Budget does not tell whole story

Mar 22 2005 By Helen Logan, Evening Gazette

As ever with the Budget, the devil is in the detail.

Not everything which is going to kick in after the Chancellor's speech is actually included in his public pronouncement to the Commons.

A good example of this was the abolition of the exemption from stamp duty for commercial buildings in disadvantaged areas.

Opinion is mixed on what effect this may have locally with some believing it will put developers off less affluent areas.

But others argue if you are a company of solid financial standing, a saving of £40,000 on a £1m purchase, while welcome, should not scupper a deal.

Then more details began to emerge on policies which have been flagged up in Gordon Brown's speech such as the £200 council tax rebate for pensioners only being a one-off payment and that the free bus travel for the elderly will only apply at off-peak times.

But perhaps what is more worrying is the view that the Chancellor's sums do not add up.

As Andrew Priestley, of Middlesbrough stockbroker Redmayne Bentley, said: "The Budget includes some blatant electioneering and looks at first sight as a vote-winning pitch by including measures such as council tax rebates and free bus travel for pensioners. But overall, some of his figures could be open to question when the economists get their hands on them particularly on the deficit and borrowing numbers, as there is little doubt we are overspending."

Time will tell whether these fears prove to be right.