GuideMeSingapore

The much awaited UK Budget 2010 has been announced and has received mixed reactions from industry experts and political leaders. A notable feature was that there were no great giveaways, especially for businesses, apart from a 2.5billion package for small and medium sized enterprises. There is also a sense of disappointment within UK’s business community. According to a report in The Telegraph, Chris Sanger, Head of Tax Policy at Ernst & Young is reported to have said:

“In failing to address the key deterrents to undertaking business in the UK – the corporation tax rate and the higher personal tax rates on highly mobile top management – the Chancellor has missed the opportunity to make the UK a magnet for new investment from around the world.”

Although UK’s Budget did outline a few measures for SMEs it did not contain any substantial measures that would attract investors or enhance its business friendly image. The threat of London’s financial community leaving the UK for other business friendly countries failed to remain addressed.

One cannot help but notice the stark contrast between UK’s Budget and that of Singapore’s – one of UK’s recent rivals. While UK is addressing its huge budget deficit by increasing the tax burden on its residents and banks, the Singapore Budget 2010 has taken a different approach. Although there were no significant tax cuts, the Singapore Budget did include tax measures that serve to enhance the country’s position as an attractive investment destination.

The natural question that comes to mind is whether Britain is losing its business and investment appeal to countries such as Singapore and Hong Kong. Both Singapore and Hong Kong are perceived to be pro-business and have gladly opened their doors to Hedge Funds Fleeing the West and UK’s Bankers Driven Out by the Bonus Tax.

Here is a quick round up of Alistair Darling’s Budget 2010:

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