The UK Budget takes place tomorrow. Many in the financial world are making predictions on how the Chancellor of the Exchequer will try to create a budget for growth.
With UK GDP for Quarter 4 2010 being revised downward to -0.6%, the new target for 2011 looks like being 1.8%. What impact will this have on the many small businesses that are our clients? So far, 2011 has been good for the promotional business. Many promotional product categories have recovered from their lows in 2009 and 2010. Larger orders are being placed for items such as promotional bags as the exhibitions and conference market recovers. Many businesses have adapted to the tougher conditions and the VAT rise has passed without too much pressure on margins.
The downside is that there are already a number of new taxes and regulations in the pipeline. National insurance being one of those. Many small businesses are tired of the endless series of new regulations – particularly those concerning workers rights. Remember small businesses are the economies engine for growth. The Chancellor needs to work with his colleagues in government and encourage them to alleviate the non-productive pressure that forces small businesses to delay growth and investment.
Otherwise things are looking very bullish for the promotional products sector.