IoD lukewarm on Budget - banking operations

People in banking jobs are learning that the Institute of Directors (IoD) gave a lukewarm response to government proposals to tackle the UK's deficit.

In a statement, the IoD was positive about moves to assist small businesses with loans but repeated its call to reverse the increases in the top-rate of income tax and national insurance contributions.

Chancellor Alistair Darling pledged to do more for small business and offered a number of incentives to help generate growth in his final budget for the general election.

Among the announcements was two of the UK's biggest banking operations, Lloyds and RBS, making available £94 billion in new business loans, of which around half will go to small and medium entities.

While Miles Templeman, IoD director general, welcomed those "positive initiatives", he derided the Treasury's inability to cut spending and reduce the deficit sooner.

He added: "This means making significant spending cuts in 2010 rather than delaying commencement until 2011. The argument that early cuts would jeopardise the recovery is mistaken."

With top-rate increases there were warnings of an exodus from London finance jobs. However, David Prosser said recently that it was more akin to a "trickle".

Updated: 25 March 2010.
Categories: banking-and-financial-services, finance-and-accounting, market-and-industry-news.