Budget Comment From Travelex Global Business Payments

LONDON, March 23, 2011 /PRNewswire/ -- Fuel duty is a key focus area for businesses in today's Budget, according to a Travelex Global Business Payments survey of more than 300 customers. Conducted over the telephone, the survey ran from 14th- 22nd March. It found:

- Most businesses (36%) were interested in hearing about corporation tax. The second most important item on the list was VAT - 30% were interested in hearing about this

- More than a third (36%) thought the budget was going to be economically driven. Only 18% thought it would be politically motivated

- 58% thought that the budget would have no impact on the pound

- We received a lot of feedback on fuel duty:

"Reduce on tax because fuel prices are ridiculous!" Importer

"We are looking for a reduction in fuel charges as it affects all of us." Exporter

- 45% thought that the budget would have a negative impact on their business

General comment:

Mark Bolsom, Head of UK Trading at Travelex Global Business Payments:

"This was a fiscally neutral budget. There were a few highlights for businesses - namely the 2% fall in corporation tax - but the message is that businesses and consumers are going to continue getting squeezed - there has never been a Plan B to the Chancellor's fiscal policies.

"British importers and exporters have heard all about the Chancellor's bold growth strategy and today needed to see him turn this rhetoric into firm tactics. The reduction in corporation tax will play a key part in spurring growth and businesses will be delighted as many of them thought the budget would have a negative impact on their business.

"We applaud the government's decision to increase availability of credit by 15% but would ask how this will be enforced and measured.

"We're also unsure whether GDP will pick up as much as the Chancellor hopes, given that inflation shows no sign of abating and oil and energy prices continue to escalate."

Impact on the pound and currency markets

Mark Bolsom, Head of UK Trading at Travelex Global Business Payments:

"Most businesses thought the budget would have little impact on sterling, as much of it had been priced in. The pound fell around 0.8% to a session low against the dollar half way through the budget ($1.6230) and eventually settled on $1.6220. It's unsurprising that sterling dipped; the OBR have scaled back their growth forecasts, raised their borrowing forecasts and inflation is likely to overshoot for all of next year as well."

Fuel duty

David Sear, Global Managing Director at Travelex Global Business Payments

"We are delighted that the Chancellor has introduced a fuel duty stabiliser as high prices have been undermining the competitiveness and efficiency of businesses that trade internationally. A poll of our business customers highlighted that this was a key focus for them today, so although it is a headline grabbing move, they will be delighted.

"With exports worth 27.7% of UK GDP,[1] we needed to see a well oiled initiative to help drive down the cost for these businesses and improve export growth prospects, and I feel like we saw that today."

About Travelex Global Business Payments

Travelex Global Business Payments is a global foreign exchange specialist providing the payment and receipt of domestic and international funds for businesses of all sizes. For more than 30 years, Travelex Global Business Payments has provided clients with sophisticated market knowledge, leading edge technologies and practical and innovative solutions tailored to individual requirements. Every year, Travelex Global Business Payments processes payments around the world over 35,000 businesses to 1 million beneficiaries.

    
    For further information or interviews, please contact:

    Emma Kane/Alicia Jennings
    Redleaf Polhill
    T: +44-(0)20-7566-6741
    E: tgbp@redleafpr.com

    Jessica Buttress
    Travelex Global Business Payments
    T: +44-(0)20-8415-4204
    E: jessica.buttress@travelex.com