Charlie Mullins on Budget 2010: I'll believe it when I see it

The founder of Pimlico Plumbers and star of TV's The Secret Millionaire gives his view on the government's 2010 Budget.

Alistair Darling made a lot of his small business support package, but I’ll be honest with you I’m one for believing things when I see them, not when details emerge from the chancellor’s mouth. Please forgive me if I sound like a doubting Tom, but last year the chancellor announced a ‘boiler scrappage’ scheme that was supposed to stimulate the heating industry. The only problem was when we asked about the detail they hadn’t come up with them yet!

That said let’s start with the promise that RBS and Lloyds – quite literally the People’s Banks – will be forced to lend small businesses £94bn in loans. On the face of it this sounds like good news, although we don’t know exactly who will qualify. But small print aside, I can’t help but wonder just how the government is going to force these two institutions to start handing out (a lot of) money, after all they haven’t been terribly successful at getting them to reform their bonus culture.

And do I think that, once a company has been turned down for finance, the new credit adjudicator is going to help? Apologies for answering like a politician with another question – but who’s got time to apply for a loan then go through a lengthy bureaucratic appeals process when you’re desperately trying to earn a crust?

Another great sounding measure is the promise to allocate 15% of government contacts to small and medium sized businesses, but has anyone ever tried to tender for one of these? It’s no secret that the reason small enterprises don’t get these jobs is due to the fact that they don’t apply for them because the time and money required just to get a tender in is completely prohibitive. This work goes mainly to the corporate sector not because small businesses can’t do the work but because you’ll go bankrupt before you raise a spanner in anger. And don’t get me started on getting paid once the work is done!

I’ll be honest that UK Finance for Growth just sounds like a fancy name for another pointless government department, or is it a quango? I’m not sure but I thought the idea was to cut down on civil servants, and this new body doesn’t sound like something that’s going to stimulate and incentivise business anyway.

From what I’ve heard today I have no confidence that Alistair Darling has produced any credible argument in favour of keeping him in charge of the nation’s finances. There is no incentive to get out there and do business, and to make profits. It’s all about forcing people through hoops, forced loans, guaranteed contracts, deferred tax payments – this is not about long-term sustainability, these measures are about short-term survival to prop up an ailing economy for a little longer. The only incentive I can see here is the increase in capital gains tax relief, which might see a few more opt to sell up and get out!

www.businesszone.co.uk

Back to News