Emergency Emergency – that’s what this budget was described as.

Now the blue lights have stopped flashing and the sirens have gone quiet, we can see the results of this coalition budget. And coalition it was – when George stood up in the Commons, he was flanked by 2 liberals (Nick Clegg and Danny Alexander), and although David Cameron sat behind George you could hardly see him at all. Presumably he wanted to hide himself especially when the VAT rise was announced (as he was the one who had “no plans” to increase VAT in his election broadcast).

However, the whole budget seems to be a sensible progressive budget in the circumstances. Tough but fair we were told in his opening sentence, and it probably is.

We were told it was going to be bad – but it is mainly bad for those in the public sector or on benefits – not the core of Daymar clients. Also the Queen’s pay has been frozen (and she is not a Daymar client either!)

All public sector pay frozen for 2 years for those earning over £21,000. Cuts in welfare payments. We await the inevitable union objections and threatened strikes from those who still cannot see the real world when it exists. Unison (yes that union which supports BA staff on unrealistic remuneration) has already said that the government has declared war on public services – I think they mean war on bloated departments where jobs-for-life employees fritter away our money.  

Most government departments will face cuts of 25% - now you may be surprised at my next comment but HM Revenue & Customs should not be cut back any more – they have already cut back their experienced staff and we are left with new untrained staff who do not know their subject and make so many mistakes that we spend too much time correcting them for our clients.

What else in the budget?

Not wonderful for those clients on higher rate tax, but it could have been a lot worse.

Not bad for those who run their own companies. Small company corporation tax rate down to 20% next year – better than labour’s planned rise to 22%.

But there was some bad news which will hit us – when VAT goes up next January to 20%, it will also mean higher fuel prices, and alcohol and tobacco prices – but at least the duty was not increased on these this time. Also that hidden insurance premium tax goes up which will hit all our insurance costs.

And most (but not all) will gain from the higher personal tax allowance – up by £1,000 each next April, and planned to go up to £10,000 by the end of this parliament.

And the new capital gains tax rate only affects higher rate taxpayers, and then not as bad as pundits expected, especially as no change was made to the annual exemption limit.

Perhaps no increase in Council Tax next year – depends on how your council controls its costs.

Good for pensioners – the state pension will increase in line with earnings not prices (however, with public sector wage freezes and private sector wages declining, this may not be so wonderful especially if inflation takes a hold).

And for once – no need to dash to the petrol station or off-licence tonight – now that is a real change from previous budgets!

All Daymar clients will be receiving individual emails on how the budget will affect them.