Glenigan Comment on Budget

Bournemouth, UK, 21st March 2012

The Chancellor has announced a range of tax cuts and reforms that will ease the burden on households and potentially lift consumer spending power. However the Government’s programme of tax reform comes at a cost. Public sector expenditure is being squeezed further to accommodate the drop in tax revenues; this will be a drag on the economy. The Chancellor’s judgement is that lower personal taxes will help lift households’ confidence and their willingness to borrow and spend, more than matching the shortfall public sector expenditure.

Encouragingly the construction industry retains an important role in the Government’s programme for driving UK competiveness and growth. The Chancellor announced an additional £130 million of investment by Network Rail and plans for a National Roads Strategy. In addition the £150 million expansion of the Get Britain Building Fund that provides upfront finance to construction firms will support the delivery of an additional 3,000 new homes.

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Glenigan's full Budget analysis will be available later today.