The Chancellor should, in the words of the Daily Telegraph, seize the olive branch offered by the Institute now and defer any changes until 2009. I appreciate that this will cause short term financial issues for those who have already made preparations for the new regime.

However, the Chancellor needs to consider the wider consequences. By delaying the start date, he will have sufficient time to properly consult on his proposals and any changes he wants to make. Only by doing so can he ensure that the implications, intended and otherwise, are properly discussed.

Businesses and individuals need to have time to plan and understand the new regime. There are now just over two months to the new tax year – not very long when you consider the initial proposals were unveiled in October 2007 – which doesn’t leave businesses and individuals who will be affected by the proposals very long to decide what to do.

By failing to tell us what he’s going to do, the Chancellor is inviting criticism from the business community that he either does not understand the needs of business or, of greater concern, doesn’t care. I’m sure neither is the case, but the longer he leaves it, the more people will think it is.

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