This article will provide testimony to the fact that all countries’ economies are struggling to weather this current depression. 1st Contact Tax aims to portray these types of news stories as they unfold over the coming months. We also intend to provide accurate newsworthy information that will pertain more to the smaller business owners, whom we believe have been somewhat neglected through this crisis so far. Keep a close eye on this site for all such stories as they come to light.
It was no small wonder when French President Nicolas Sarkozy raised his hand to criticise his good friend and business nemesis, Prime Minister Brown. This time the topic at hand was the decrease in the VAT rate to 15% which you would have thought was the onset of the second French Revolution. Sarkozy, whose own handling of economic policies in his own country has derived harsh words, informed the UK Prime minister that the VAT cut simply has not worked. He claimed that even with the VAT decrease, consumption also had declined, the opposite effect that the UK was hoping for.
PM Brown almost had to say, “Stand in Line” as a long list of leaders in the EU had been berating him for lowering the rate of VAT. But France declared that it was not criticising, but merely making an observation that the same decrease in France would not have worked whatsoever. They would rather put the country’s money into infrastructure projects and not dither about 2 and some odd per cent. No mention was made that a week before this sound trouncing over 1 million workers in France had gone on strike. It seems that Sarkozy’s sardonic remarks have hit a raw spot at Downing Street as we are getting ready for the G20 Summit Meeting in London.
Brown was hoping to announce that his VAT reduction was leading his country into recovery when everyone else was lambasting him otherwise. However, no one, not even Japan at last count, can sport that their country is on the right track. America is just now trying out the latest subsidy offer but GM motor works has offered back one of two deal breakers; either give us more money or we file for bankruptcy. No one single country can look out and say, without their fingers crossed, that they have weathered the storm just fine.
Even Germany thought to chime in when they called Brown’s VAT reduction ‘crass and breathtaking’. Chancellor Brown in no small way thought that this plan was fool proof, but he was thinking it would be a stimulus plan such as other countries were attempting. It might mean a loss of millions of pounds to the UK economy but he had hoped it would have spurred on more spending. None of us could be in a position to know that the economy was to be in such a sad position last summer.
Furthermore, if these so called G20 countries don’t see eye to eye on basic fundamental strategies, and quit their ankle biting, no amount of spending or curtailing of taxes is going to work. The entire next two years is going to be a test of stamina, budgeting and job keeping. Everyone is going to be affected by this twist of fate in some way or other.
Here at 1st Contact Tax we fervently believe that even smaller and local businesses have a fighting chance to get through this economic downturn. 1st Contact Tax will be available to assist you through these difficult times and will discuss the viable options and actions that you may be able to take to ensure your company’s survival.
1st Contact Tax offers Specialist tax services to contracting professionals these services include: Contractor Accounting, Personal Tax for Contractors, Limited Companies for Contractors and Contractor Financial Advice.