Anyone even tangentially involved in UK economics will have noticed that the future is not looking bright.<\/p>\n
It is all but certain now that there will be some kind of tax rise in the Autumn Budget, but the forecast becomes bleaker by the day.<\/p>\n
The latest news surrounding the Chancellor\u2019s borrowing has caused much concern for businesses.<\/p>\n
We are going to break it down and try to predict what it could mean for your business and what you can do to prepare for the changes.<\/p>\n
How much is the Chancellor borrowing?<\/strong><\/p>\n In the month of June, borrowing rose to \u00a320.7 billion, which is \u00a36.6 billion higher than in the same month last year and the second-highest June borrowing figure since monthly records began in 1993<\/a>.<\/p>\n There are a number of factors that are contributing to the rising rate of borrowing.<\/p>\n The general economic uncertainty that has impacted the global markets has caused the UK’s financial power to wane, while the controversial handling of welfare reforms has resulted in a destabilisation of the Government\u2019s financial roadmap.<\/p>\n The Spending Review<\/a>, now a distant memory, sent shockwaves through the economy as the generous investment promised opened up a significant hole in the finances.<\/p>\n It seems that, for the time being, the Chancellor has elected to fill that hole with excessive borrowing.<\/p>\n What does this mean for your business?<\/strong><\/p>\n Borrowing is a short-term solution to a long-term problem.<\/p>\n Wherever one elects to lay the blame for the current state of the economy, things are not looking positive.<\/p>\n There is ongoing discussion around a wealth tax that may serve to alleviate the financial concerns while shielding those with less money.<\/p>\n However, there is a fear that such an imposition could cause the wealthy to leave the country rather than contribute more to the society in which they live.<\/p>\n There is a debate as to whether the number of millionaires leaving the country is being inflated as a way to dissuade the Government from pursuing a wealth tax, but such reports could cause a Chancellor to lose their nerve.<\/p>\n As a business owner, there are other concerns to keep in mind when looking at the rocky state of the economy.<\/p>\n The average person has less spending power than they did before as rising food prices<\/a> contribute to increasing inflation.<\/p>\n