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Budget inflation too much for businesses

Budget inflation too much for businesses

Hands up if you are suffering Budget fatigue.

Today will be the fourth time in less than 12 months that George Osborne has dug out the famous red despatch box and taken the short ride from his home in Downing Street to Westminster.

Granted, one of those was a mini-Budget in the form of the Autumn Statement, but by the time the Chancellor sits down he will have spent five hours setting out the State of the Economy to our elected representatives.

At lunchtime, the ringleader of the Budget circus will again rise to his feet amid a chorus of jeers and cheers.

The performance will begin with the usual revisions of the forecasts and thanks to the data bods for their work.

That’s despite the fact a child could make as good a job at accurately estimating the nation’s output as some of our top economic forecasters.

And then it is on to the meat and drink of proceedings as the Chancellor delivers his latest masterplan to stimulate the economy while simultaneously balancing the books.

In the current uncertain times, with the sustained low in the oil price and the threat of terrorism just two of the macro-economic factors weighing heavily on global markets, that is no small challenge.

Add in the fact the UK economy is still a long way from rebalancing the services sector remains dominant with higher value manufacturing struggling to make headway and the odds get longer by the second.

Despite the challenges, I expect the Chancellor to be in ebullient mood as he addresses the House today.

The UK has delivered growth under his austerity agenda and inroads have been made into the debt mountain.

That gives Mr Osborne the opportunity to roll out his favourite pat phrases.

But the reality is the sun has rarely shone on the UK economically in recent years and the roof still leaks.

And it is not just me that thinks so.

The Federation of Small Businesses has called on the Chancellor to bolster confidence by being clear and consistent in its backing for enterprise.

That might not seem too much to ask from the man tasked with encouraging the UK’s economic resurgence, but the imminent introduction of the National Living Wage next month and the snail’s pace reform of business rates has left many wondering if the Government has the best interests of industry at heart.

Fears the Chancellor may end the five-year fuel duty freeze has also done little to calm nerves.

So what will this Budget do to sate the business community?

I fear the answer will be very little.

There will probably be new reliefs to help stimulate production and exploration in the North Sea, that’s a given.

There will be cash for major infrastructure projects, although the bulk of that money will be for the so-called Northern Powerhouse many miles south of Courier country.

And there will likely be some movement on industrial allowances, helping companies to upgrade their equipment, improve productivity and, crucially, boost exports.

The Chancellor likes to pull a rabbit from the hat and I’d not be surprised if the loathed Air Passenger Duty was on his radar, especially now the SNP has promised reform if/when it is returned to power at May’s Scottish elections.

And that, I suspect, will be that.

With the EU referendum pending, today’s Budget is more political than many in recent times and I suspect that delivering a sucker punch to the Out campaign will be the Chancellor’s real objective this time out.