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Resilience will fuel our recovery say experts

IN THE wake of last week’s emergency budget, business leaders have backed the North East – and its resilient workforce – to power through the tough times ahead, writes Fiona Martin.

Over 200 delegates gathered at the emergency budget seminar in Newcastle, to pick over the bones of Chancellor George Osborne’s new tax policies and their implications for the North East.

The seminar, hosted by RMT Chartered Accountants, looked at the likely fallout from Osborne’s tough strategy, with many business leaders remaining buoyant that the region has the tenacity, experience and resilience to minimise the negative impact of severe cutbacks.

Managing and tax partner of RMT, John Richards, acknowledged the extent of the UK’s economic deficit, saying: “We shouldn’t be under any illusion that none of us will be affected.

“We know the challenges and the opportunities. We will get on with it and move forward.” The seminar largely focused on the much-debated topics of Capital Gains Tax, VAT, and anti-avoidance. Inevitably, there have been widespread effects, with cutbacks on public sector jobs and difficulties setting up new businesses.

“There’s quite a lot of work and thinking to be done,” said Mr Richards.

“A great deal of care needs to be taken, but savings can be made. It is important to understand the legislation to make sure we can advise clients accordingly.”

Estimated debt level figures show that in 2009, the UK was in 68% debt, which is expected to have long term effects for up to 14-16 years. In comparison, figures also show Japan were 192%, Italy 115%, and Greece 115%.

RMT Financial Management director Kevin Walker, said: “The trouble in the UK is that 25% of GDP is in financial services, and we have to pay for it now.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .