Can we absorb all the tax increases?

The London chauffeur Hire industry is about to be hit with a couple of tax increases that will effect our price structure. The increases are so high that it will be impossible for us to absorb.
New government, new budget, cut backs, credit restrictions; you have heard and absorbed all of the points raised by George Osbourne during his budget speech. His plan is a five year one to re build the economy via a "tough but fair" approach. Whether you believe it to be tough or fair or both, it does not matter. The only certainty is we will all feel a little poorer either individually or as companies or both.
I thought I would concentrate on a few items that have direct impact on our business with clients. The Chancellor has prepared us all to face a significant VAT increase to 20% from 17.5% that to my reckoning is almost a 15% increase. Then he has increased the Insurance Premium tax to 6% from 5% which is an increase of 20%, finally the duty on fuel will increase which will put prices at the pump up by the minimum of 3p and that will bring the price of unleaded to approx £1.20 per litre and diesel to approx £1.23 per litre. That's gone over a £fiver per gallon in old money people.
How much of these increases the chauffeur hire industry can withstand remains to be seen but I would venture to say that we will be forced to pass on the increases. However from what I understand you will be able to put a lot more money into your pension whilst paying no tax on it. I think that's where the fair bit comes in. It's only fair that the higher earners put away more of their money in a pension fund and out of the economy without being taxed on it.

It is now coming up to the silly season where we all nominate our favorite Chauffeur and Chauffeur Hire London company to the various Associations that we are all members of. I am wondering what prizes we will win this time round.

Now to more important matters, we have lost the third test to the Pakistanis making the score 2-1 from a four test series. All we need now is a draw for us to be overall winners and go into the Ashes games with a lot of confidence. Chelsea have won the first two games of the new season 6 nil and are top of the league again. (that's why we are champions). Finally we are only 5 weeks away from the Ryder Cup when we will triumph once again. This years challenge at the Celtic Manor will be a hard one but we will prevail. The news coming out is that it is already a sell out and parking will be limited. Don't forget we can get you there and bring you back at a very reasonable cost. Browns are prepared to discount every journey that is booked mentioning this weeks blog. Just tell them on the controls Peter said so.

With the weather being what it is it feels that winter has come early. Start thinking about getting the car ready for the frosty days ahead. I will tell you how to do it next week.

Have a good one people, till next time.