George Osborne several years late has eventually got around to targeting the real engines for economic growth and employment in the UK that are small businesses as large multinationals are easily able to evade taxes on profits generated in the UK which they then pull out of the British economy and deposit in tax havens, though the tax haven of Cyprus won't be getting any new deposits any time soon.

The announcement to cut employers National Insurance contributions by £2,000 per year from April 2014 amounts to a direct tax cut for small businesses AND acts as an incentive to set-up in business and employ workers.

The £2,000 cut in NI equates to the amount of Employer NI that would be payable on an employee earning £22,000 per year or a wide range of alternatives all the way to employing many part-time workers on minimum wage as the Chancellor illustrated -

"For the person who's set up their own business, and is thinking about taking on their first employee - a huge barrier will be removed."

"They can hire someone on £22,000, or four people on the minimum wage, and pay no jobs tax."

Another business announcement was to bring forward the cut in corporation tax to 20% from 21% from April 2015, though this will mainly effect larger business as the small business rate is already at 20%. But it will give Britians an competitive edge especially as many other countries such as France are raising corporation tax rates.

Today's budget strategy is clearly for the the Chancellor to start prepping the UK economy for an May 2015 Election boom, therefore expect many more give away's and tax cuts to follow over the coming years with obvious inflationary consequences as the debt mountain continues to expand.

OBR - OBI - Office of Budgetary Incompetence

The OBR or OBI, came forth with another stream of worthless forecasts. I don't have the time today to demonstrate just how incompetent the academic economists at the OBR really are, but the government could save many millions per year by scrapping this worthless department that consumes tax payer funds without ANY productive value, as EVERY forecast has turned out to be WRONG!

Meanwhile George Osborne literally choked on his budget as he tried to suppress the underlying truth of an ever expanding debt mountain as the government prints debt to bridge the unbridgeable gap between that of government spending and revenues that feeds the exponential inflation mega-trend.

The bottom line is this - At least George Osborne is trying to sort out Britain's economic mess, when those that created the mess, Labour's response is to tax businesses, borrow and spend on an unproductive public sector black hole which would BANKRUPT Britain! The big picture remains as I have iterated countless time's which is one an exponential inflation, for protection strategies see my latest ebook The Stocks Stealth Bull Market 2013 and Beyond (FREE DOWNLOAD).

Source : http://www.marketoracle.co.uk/Article39572.html

Nadeem Walayat

http://www.marketoracle.co.uk

Nadeem Walayat has over 25 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of four ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series.that can be downloaded for Free.

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 600 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

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