Following the ill conceived proposed changes to Capital Gain Tax and an 80% plus increase in the charge to business people on the sale of their business (to an flat 18% CGT charge from 6th April 2008) Alistair Darling had said he would announce last week the proposed revisions to his plans to change to taxation of businesses and entrepreneurs the system following widespread complaints and objections to the proposals laid out in the Pre-Budget speech.

Sadly this was not to be. There is real no indication as to when these will be released either which all adds up to even more uncertainty in the world of business.

Miles Templeman, director general of the Institute of Directors, commented: “Having committed to announcing the way forward before Christmas, the Chancellor has now deferred a final announcement until the New Year. This will lead to continued uncertainty at a time when business owners need to take critical decisions. The Government should recognisethe impact of this by considering deferring implementation of the changes, and commit now to a firm date on which its final decision will be announced. We can only hope that the Government will use the extra time to make the right, pro-enterprise decision. If it does so, we will welcome that. If it does not, businesses will have every reason to complain.”

Either Government and Mr Darling don't really know what they are doing and are in a degree of chaos or they are giving proper consideration to introduce far more sensible proposals. Which it is does not seem totally clear but Government is at least talking to people from a range of business organisations about the options.

However with the introduction of IR35, the Arctic Systems attack and various other ongoing proposed changes one does have to wonder if Government has already given a very clear message to the business community that small businesses in particular are not really what the Government wants? I can't really see much encouragement of business and entrepreneurship. Red tape, and a very agressive HMRC, heaps of legislation to cope with, tax, health & safety, employment law and so on. With the introduction of a £30,000 charge to Non Domiciles will outward investment in the UK of foreign business skills also now taper off in the coming years?

It does not seem like a rosey picture thats for sure. Add falling house prices, falling growth, rising inflation. It was all a bit predictable was it not if you sit and think about it. Can the average price of a house continue to rise like they have? The average price is currently £230,474 (http://news.bbc.co.uk/1/shared/spl/hi/in_depth/uk_house_prices/html/houses.stm).  If house prices rose by 10% per annum in three years time the average price will be over £300,000.  In 10 years time the average price would be almost £600,000. With 5% rises per annum the average cost will be around £375,000. There are going to be some pretty large mortgages flaoting around to cope with rising costs.

I personally just cannot see how the books are going to balance?

If house prices are to continue rising inflation the inflation is absolutely certain to rise steeply with it as people will be demanding much more wages to fund ever increasing size of mortgages.

I wonder if the tax take from CGT is going to fall now anyway. Whichever way you look at it something has to give sooner or later. Rising wages are likely the affect the value of businesses and falling house prices would reduce the tax take from CGT on property?

Either Government has the projections and would like to keep them somewhat secret or Government has no idea what they expect for the future?

I do however think that Gordon Brown will regret not calling a General Election when he had the chance as I cannot see any good news being around when he eventually does? Either debt will be even higher than the record levels it is already at, or peoples pride and joy will be falling in value?

What I find truely amazing about the arrogance of this particular Government is that they have harked on and on about not having Boom & Bust under it's management?  I hope they are right but I am probably not alone (or maybe I am) in thinking there is nowhere else to go and that sooner or later it is inevitable. In fact if it does go bust it is likely to be much worse than the last bust (in terms of the personal affect it will have on a large number of people with high mortgages, struggling businesses or large debts) on albeit that I think it will probably last a shorter period of time this time around. Yet more uncertainty.

This Government in particular seems to specialise in uncertainty on almost every front!