Two years on...

It's still unbelievable how they implement policies where the consequences of actions are not thought through. Take the latest ISA debacle. How many U-turns does one Government have to take, they just simply act on a whim all the time.

The burden of cost and tax just to stand still has increased significantly. Our tax alone has spiralled by 30%. The losers are the public as businesses are having to hike costs upwards to cover their outgoings which will further impact inflation. Once these go up they won't come down! The regulatory strangulation and increase costs of hiring staff- even those without experience- is having a significant effect as the recent figures showing 1m working age teens out of work or studies. All in all, just 2 years to destroy the economy, impose multiple U-turn, destroy public confidence and get notoriety as the worst government and PM in history is some going but not the best accolade and legacy to leave!

Labour didn't get the memo that we need economic growth and comparative advantage. There is no plan, no direction and no clear leadership as the bond market continues to run the country. Businesses are going to continue to suffer in the second half of this year and lets not get started about the housing market and the 1m plus properties that were going to be built. But apart from that, everything is rosy.

The last two years have felt like death by a thousand cuts. The abolition of the Furnished Holiday Let tax regime, increases in Employer National Insurance and higher property taxes have all added costs at a time when consumer confidence remains fragile.

Small businesses create jobs, invest locally and drive tourism, yet there always seems to be another tax or levy around the corner. Many entrepreneurs are questioning whether the rewards still justify the stress. Government should be making it easier to grow a business, not steadily increasing the burden on those willing to take the risk.

2 years on, the dominant theme has been raising tax revenue rather than creating growth. Successful economies need fiscal discipline, but tax receipts depend on growth. The concern is policy has focused more on burdening productive activity than encouraging it.
For many clients, the cumulative effect of IHT reform, capital gains changes & abolition of the non-dom regime has been significant. Wealth is mobile. We are seeing clients restructure their affairs and, in some cases, their residency. When capital and entrepreneurial talent begin to look elsewhere, the long term cost can outweigh the short term tax gain.
Investors value stability, predictability and a clear pro-growth agenda. 2 years on, many businesses have seen tax increases but are still waiting for the growth strategy behind them. You cannot tax your way to prosperity. The risk is those most capable of creating jobs, investing capital, & driving growth conclude that other jurisdictions offer a more rewarding environment.

As a London-based financial advice firm, we are not in better shape because of government policy. The biggest issue is confidence. Businesses can deal with difficult conditions, but what really hurts is constant uncertainty around tax, employment costs and regulation.

Higher employer National Insurance has made hiring more expensive, and that matters for small firms trying to grow responsibly. Every extra cost forces a choice: do you hire, invest, expand into another city, or hold back and protect cash flow?

For clients, the impact is just as real. People feel less confident about mortgages, investing, moving home or starting businesses when the economy feels unstable and the tax environment feels heavier.

I do not expect any government to make business easy, but policy should make growth feel worth the risk. Right now, too many business owners feel they are being asked to be ambitious while the cost of ambition keeps rising.

Thirty-eight businesses close every day because they're owed money, according to the Government's Department for Business & Trade. That's the small-business scandal we don't talk about enough. While many business owners have focused on tax rises and higher employment costs, my experience has been positive, with support and funding from the British Business Bank and Virgin StartUp.

However, as Chair of the Organisation of Responsible Businesses, I see firsthand how devastating late payment can be. It's heartbreaking to watch brilliant microbusiness owners lose their companies, not because they've failed, but because a larger organisation is treating them like an interest-free overdraft. Labour's plans to tackle late payment won't solve every challenge facing SMEs, but it's good they're recognising that cash flow is often a bigger threat to small businesses than tax. If they can turn promises into reform, it could save thousands of firms and protect the communities that depend on them.

Having set up in independent financial advice business in the last two years, I'd say the environment has been mixed. Greater regulatory scrutiny and uncertainty around tax policy have made some business owners and investors more cautious, which can delay financial decisions.

Stability and predictability are important and frequent speculation around tax and pension changes can make planning and investment decisions harder for both advisers and clients.

That said, that uncertainty has also increased demand for professional financial advice as people seek clarity and reassurance. Our biggest challenge has not been demand, but confidence.

The the changes around pensions, inheritance tax, business property relief and other areas have created significant demand from clients who are looking at how these changes impact them and we are helping them plan their finances effectively to adapt to these changes.