Editor Andrew Davies on why the emergency budget is good but mostly bad for the KBB industry... 

I don't know about you, but watching the budget is like stumbling across a sport you don't really

understand the rules of but somehow it remains pretty compelling thanks to an occasional burst of action. 

Basketball, for example, is fast, furious, highly skilled and I haven't got the faintest clue what's going on. 

And while the budget speech is about as fast and furious as a used Bedford Astramax, the moans, shouts and general rhubarb coming from the opposition benches make it essential viewing.

That doesn't mean I'm going to pretend that I follow everything that's being said and perform instant analysis in my head like Clive Tyldesley - "That's a remarkable move from Osborne, the

10% CGT rate for entrepreneurs will be extended from the first £2m of qualifying gains to £5m, and you must say that his first touch was fantastic." 

In fact, it's all a bit like this 

But once the dust settles, and the headlines come out there's, anyone interested can start to get an idea of how it might affect them.  

For the KBB industry, of course, the rise in VAT will have a major impact. Jumping from 17.5% to 20% from the start of 2011 was expected but it doesn't make the job of getting consumers to commit to a major purchase like a kitchen or bathroom any easier.

Of course, it does mean retailers have got five months to prepare with some proper "buy your new kitchen/bathroom before the VAT rise" type promotions. 

Retailers could also benefit from measures to increase business rate relief for a year from the start of October, giving full relief for eligible businesses occupying premises with a rateable

value of up to £6,000 and a tapering relief to £12,000.

However, all this is immaterial if consumers just turn away from major purchases thanks to the VAT increase and the income squeezes from the changes in personal tax.

In other words, it looks like selling is going to get even harder for the immediate future. No one would deny that some extreme measures were necessary to deal with the public debt, but like wind turbines, recycling plants and nuclear power stations necessity is fine as long as they're nowhere near me. 

It's easier said than done, but concentrating on your own business and making sure you're working as efficiently and proactively as possible is the tactic that will see you through. 

This is summed up by a quote I heard from Marks and Spencer boss Stuart Rose on Desert Island Discs recently: "The trick to being a successful retailer, whether it's Marks and Spencer or anybody else, is to understand what the zeitgeist is, to understand what the mood of the moment is, and then to try and deliver that just ahead of when the customer wants it."

Let me know what your experience and opinions are of the consumers' current willingness to buy and what factors are affecting that decision.

Email me direct: andrew@kbbreview.com