On Wednesday December 9th, Alistair Darling delivered his pre-budget report. The details included a freeze on current inheritance tax thresholds, V.A.T. to return to 17.5%, stamp duty thresholds to be lowered on January 1st and a one off 50% tax on bankers’ bonuses over £25,000. As usual there was a mixed response to the budget contents but one agenda item (or lack of it) provoked a united reaction. The glaring omission fuelling political and economic debate was how he was going to reduce the current deficit of £178bn. According to the Times Online the analysts were aghast at this exclusion. “The PBR [pre-budget report] does not establish a credible and detailed plan to return from the UK’s huge structural fiscal deficit to a sustainable path,” said Michael Saunders, an economist with Citigroup.
Additionally a proposed increase of 1% on National Insurance Contributions in April 2011, caused business leaders to express concern about what ‘essentially amounted to a tax on jobs’ and its potential to encumber the level of new staff recruitment that could impact positively on unemployment statistics.
For UK businesses, the PBR adds to the constant pressures that arise from a new year that starts amidst persistent forecasts that UK economic recovery will be slow, requiring the continuation of significant cost cutting and sales growth strategies.
The addition of a Telecoms Cost Management (TCM) review to the cost cutting agenda could drive considerable returns for many organisations. Comprehensive analysis of the total telecoms spend for the entire estate could reveal savings from under-utilised lines, incorrectly applied discount schemes, erroneous charges on historical bills as well as opportunities for improvements to existing installations. All of this can drive positive financial gains that can be reported against telecoms budgets for the coming year and used to fund future technological developments or perhaps even support the NICs for an organisation. Whether working with a TCM specialist or undertaking the review with in-house expertise, the analysis of your telecoms expenditure could ensure the ‘pre-budget report’ for your organisation is in a healthier position.
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