Spring Budget 2024: SMEs deliver their verdict

Even the world’s most observant optimists would struggle to find any positives for the property market in today’s budget. With an election coming up, I’m not sure simply trying to avoid another ‘trussenomic’ disaster is ambitious or impactful enough. Small businesses and the economy will not be inspired by this budget speech.

What an embarrassing show this Budget was. It accurately portrayed the circus our country has become. This was certainly not an election-winning Budget, so either they have just given up or are plain out of ideas.

Far from the white-knuckle ride that was the Truss Budget, most of this Spring Budget was pretty uninspiring. Even the embarrassingly childish behaviour of MPs didn’t inject excitement. Perhaps the uneventful nature of the Budget was in fact a blessing in disguise. Initially it seems this is a Budget that focused on stability, and SWAP rates should react positively to this. If they do, we may see them reduce in the coming days. As a bi-product of this, better rates will then start to become available to borrowers. If you believe it, it was also reassuring to hear the Chancellor say that inflation should fall below 2% in just a few months. This surely puts a lot of pressure on the Bank of England to reduce the Base Rate, which will further improve opportunities for borrowers. Sadly, there were no announcements to help mortgage borrowers specifically and nothing to stimulate the property market, which could have been a missed opportunity ahead of a General Election.

BUDGET SMUDGEIT there is nothing radical nothing but hot air from huntys mouth just like this current government for the past 14 years nothing in the budget to help first time buyers or families on the brink of oblivion the smallest of changes to sme's which in the wash will do bugger all.

This measure aims to stimulate the housing market by encouraging more transactions, with the expectation of increased revenue. While this tax cut represents a step in the right direction, addressing the broader issues plaguing the UK's housing market requires a more comprehensive and bold approach. The reduction in capital gains tax, though beneficial, is unlikely to be a panacea for the challenges faced by many seeking affordable housing. The UK's housing crisis, characterized by high prices and a shortage of affordable homes, necessitates a multifaceted strategy that goes beyond tax adjustments. To truly transform the housing landscape, more innovative and courageous reforms are needed, targeting the root causes of the crisis. This could include measures to increase the supply of affordable homes, improve the accessibility of financing, and ensure a fairer distribution of housing resources.

Much of the benefit from tax cuts unfortunately has disappeared into higher borrowing costs for homeowners and business owners. Cuts to lending rates will have a much larger influence on our economy than any 2p cut in the tax paid by individuals.

The Chancellor was trying to tread a fine line between delivering what the country needs and can afford, versus an increasingly desperate attempt to get voters onside before a General Election. The result was a damp squib of a Budget, long in length but short in cheer, especially for those in the property market or for first-time buyers. Considering how important the housing market is, it was surprising that there were only minor announcements. Abolishing the furnished holiday lettings scheme and removing the stamp duty relief to those buying multiple properties at the same time will have a small effect, but limited at best. Reducing the higher rate of property CGT from 28% to 24% may encourage some more to sell, but it won't send people who are not already to Estate Agents in a rush to sell up. With white rabbits conspicuous by their absence, the Chancellor has gambled the house on a further 2 percent National Insurance tax cut, which, whilst welcome, may prove to fall well short.