I have to admire Rishi Sunak for taking on the PM job as the country tries to grapple with the effects of the once-in-a-lifetime pandemic, the war in Ukraine, cost of living issues, shortage of labour, rising inflation and interest rates ...
If we don't have positive signals soon then the public won't get behind Rishi Sunak!
The remedy for soaring inflation and rising borrowing costs is normally tax rises and spending cuts, but this goes against Rishi's gut instincts of low tax as he wants basic rate income tax at 16% by 2030.
"The City reacted positively to Rishi's return!"
What we do know, as backed up by the City's reaction to Rishi becoming Prime Minister, is that he is viewed as someone who understands the economics and is fiscally responsible. Rishi is going to have to build a team that can govern with unity and make some extremely difficult decisions.
It is my view that he is going to have to send out some very strong signals. The public wants to know how institutions like the NHS will cope and thrive, when fuel costs will start coming down, and whether they can afford to both heat and eat this winter.
If we don't have those signals then the public won't get behind Rishi, the economy won't improve and we won't get the tax cuts that he wants to hand out. I've just heard that Jeremy Hunt has moved back the Medium Term Fiscal Statement to the 17th of November and it will become a full Autumn Budget instead.
One final observation: Rishi Sunak is a teetotaller so late-night rave's in Number 10 are probably banned.
I wish him the best of luck.
Until next time ...
ROGER EDDOWES Business Godparent
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Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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