The last pre-budget report (PBR) from Chancellor Gordon Brown was surprising brief, yet contained many key points, according to Bridgend based accountancy firm Graham Paul. While green issues dominated, underlying these were major financial and tax implications for local businesses and individuals to address.

Partner John Squire comments: “Many businesses may feel that environmental issues are not their concern, however it’s exactly this reaction which Gordon is trying to address and of course the best way to do this, is to introduce financial measure for those which ignore our changing climate. So looking at your company’s fuel consumption, company car schemes and business travel is now more important than ever.”

Main points announced included that from February, air passenger duty will rise from £5 to £10 for most flights. There was also an inflation rise in fuel however these increases were offset against tax discounts for biofuels, which were extended.

With regard to self employed, the government remains concerned about the tax motivated incorporation of the self-employed, which involves businesses taking advantage of structural differences in the tax and NIC treatment that applies to companies. The government will therefore continue to review ‘how the system could be modernised, made simpler, more efficient and more competitive’.

Protecting employees featured as highly on the list on priorities as protecting the environment with the national minimum wage now at £5.35 an hour and in January the penalties for failing to pay it will rise. The government will also introduce from April 2009 a new entitlement for all pregnant women to receive child benefit from the 29th week of their pregnancy and the basic state pension will rise to £87.30.

John continues: “While any extra direct costs to a small or growing business can be hard to deal with, such as the national minimum wage, it’s good news that the government is also making the effort by increasing state payments such as child benefits and pensions.”

For more information contact Graham Paul on 01656 679800.