The GAAPweb blog

The Budget 2010: The devil’s in the detail

Everyone, it seems, has an opinion on the ‘old’ New Labour’s plans to tighten the UK’s purse strings in this year's Budget. Were they tough enough? Have all the deficits been covered, or have new ones been created?

Here are the key points of interest:

• First-time home buyers will no longer have to pay stamp duty on properties up to the value of £250,000 in 2010-2011.
• Fuel duty up by 3p – staggered between April 2010 and January 2011.
• Cider duty is to rise 10% above inflation.
• Alcohol and tobacco duties to rise by roughly 2% year on year.
• Capital Gains Tax to remain at 18%.
• Everyone in the UK will be guaranteed access to a basic bank account.
• State-subsidised banks to provide a £2.5 billion package for small businesses to boost skills and innovation.
• Civil servants will be relocated away from London to save expensive city costs.
• The budget deficit for the 2009-2010 financial year is £11 billion less than originally forecast.
• The economy contracted 6% during the recession.
• The government is investigating scrapping the retirement age.

The stamp duty issue is definitely the headliner. In theory, the deficit will be paid for by a 5% stamp duty increase on properties worth more than £1 million. However, is this enough to plug that hole? It has been suggested not.

Scrapping stamp duty for first-time buyers is estimated to cost the Treasury £230 million in 2010-2011 and £290 million in 2011-2012. Increasing the rate on £1 million plus properties will raise an estimated £90 million in 2010-2011 and £70 million in 2011-2012. Despite these figures not adding up, at least it will get the housing market moving again, rejuvenating other areas of the economy.

Already dubbed by the media as the ‘Robin Hood Budget’, is it really ethical to transfer wealth from the rich to the poor, or should Mr Darling have made the banks assume greater accountability for their role in the state of the economy?

Certainly, by forcing banks to lend to small businesses and offer basic bank accounts to everyone, the government is asserting its authority.

All of the measures outlined show that the government has a very clear agenda on the redistribution of wealth. But are these measures too broad? Are deficits really being tackled head-on?

As a financial professional, are you disappointed by the lack of detail on deficit, or do you think the Budget breathes much-needed life into the economy? Leave your comments below.

Didn't get a chance to catch the speech in full? Have a look at my Wordle below.


Source: HM Treasury

A future in the Public Sector?

It is safe to say, without raising too many eyebrows, that 2009 was not the most prosperous of years in terms of recruitment. However, in spite of the recession, working in the Public Sector seems to have taken on a new lease of life – and the early indications are that 2010 will be a far better, if not a ‘bumper’, year.

The Office for National Statistics (ONS) claims that public sector workers earn 7% more than their peers working in the private sector. Maybe it’s reasonable to assume that there might be other significant benefits working in the public sector. Despite the economy in disarray with numbers of vacancies distinctly lower, the shrewd candidate can turn that to his or her advantage.

Increasingly, people with a commercial background are looking for a new direction and, similarly, public sector line managers are favouring candidates with extensive commercial experience. As recruitment consultants, we are certainly seeing more and more candidates who are looking to join an industry that is selfless, yet rewarding. Despite the worrying plight that we find the economy to be in, candidates who posses strong, ‘in demand’ skills are experiencing first-hand the benefits that the public sector has to offer.

The ONS expects average annual earnings within the public sector to have hit £22,405 in 2009, compared to the average commercial worker reaching £20,988 – although we should be aware that this statistic is not specific to the finance sector.

However, the public sector has long been seen to offer other benefits, such as improved working conditions – an average working week of 35 hours is not uncommon – and the ability to take up a pension at the tender age of 58. For those with an altruistic streak, the most significant factor when working in the public sector is the ability to ‘give something back’; doing good for both oneself and others.

So what of the future of the public sector?

The public sector is arguably 12-18 months behind the curve compared to organisations within the industry. It is widely accepted that 2010 will be a tough year, particularly with a general election looming and a change of government a distinct possibility. In fact, it is almost certain that public deficit will be reduced with the help from cuts in public sector services, and this will have an inevitable impact on jobs. However, to reiterate an earlier point, those with strong experience and marketable skills will still be of interest to the public sector – perhaps more so now than ever.

Regardless of the political hue of any new government, we will see significant changes in the public sector. My prediction is that the next five to ten years will be more rewarding than ever for finance professionals in the public sector – particularly those who will take change by the scruff of the neck.


Nick Ross currently recruits finance and accountancy professionals across the Public Sector at WH Marks Sattin. For more information about joining an industry that is ultimately selfless yet rewarding, then contact anyone on the Public Sector team at WH Marks Sattin.

So, you want to work for a ‘Superbrand’

Companies that carry the titles Big 4, blue chip, FTSE or more recently ‘Superbrand’; aren’t these just different words for the same thing?

And how are such labels acquired? Scale? Delivery? World domination? Or is it just simply a measurement of annual turnover and profit?

The exact criteria remain a bit of an enigma. The Business Superbrands survey defines a ‘Superbrand’ as follows:

“A Business Superbrand has established the finest reputation in its field. It offers customers significant emotional and/or tangible advantages over its competitors, which customers want and recognise.”

With the ranking of PricewaterhouseCoopers (PwC) as one of 2010’s top ten Business Superbrands last month (in addition to its Big 4 status), what does it actually mean to work for such a company?

The most obvious (but still valid) answer is the weight it adds to your CV. Prestigious companies attract fierce competition, so if you manage to get offered a job, you’re likely to be the top of the candidate pack.

However, don’t miss out on smaller businesses just because they don’t pack the same ‘celebrity’ punch. There are plenty of opportunities at smaller accountancy firms and SMEs. You’re likely to encounter a greater variety of work and the opportunity to get to know people rather than masses of faceless names and email addresses.

Equally, you can dip a toe into other facets of business by working as an accountant for a company rather than a practice. Read about more career options on the GAAPweb blog.

Whether or not you decide to actively pursue a career with a prestigious company, you should always keep your options open. After all, a ‘Superbrand’ organisation is only as good as its employees.