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Group Welcomes Business-Friendly Measures in Budget
Listed under: Top Story
Published: Wednesday, June 23, 2010
The Forum of Private Business (FPB) has hailed a number of the incentives unveiled in the Government's recent budget as victories for small businesses, arguing that whilst the increase in VAT – seeing it rise from 17.5% to 20% – will be less than ideal for many retailers, other changes, such as the one percent cut in smaller companies' taxes, will be great news for the industry.
Commenting on the report, Phil Orford, chief executive at the FPB, says, “I think many small business owners will be pleasantly surprised by the Budget. Not only did the Chancellor make all the right noises about supporting enterprise and smaller companies, he backed it up with concrete, tangible policies.”
He adds, “Obviously the VAT rise will have an impact on many smaller businesses, either directly or indirectly. However, the money to pay off the deficit has to come from somewhere and I expect most Forum members would rather stomach a VAT increase than a rise in other taxes, or even greater cuts in public spending.
“The one percent reduction in small companies’ tax is obviously more than welcome – it’s something we and the SME community have long called for. It also represents a two percent cut in real terms, as the previous Government had planned to increase it by a further percentage point,” he reveals.
Mr Orford continues, “The pledge for a wholesale review of employment law – quietly announced in the full Budget document – is also a highly welcome one. Our members frequently cite it as one of their main areas of concern so any moves to simplify and rebalance the regulations affecting smaller employers have got to be welcomed.”
Addressing the Government's proposals with regards to National Insurance (NI), he says, “The moves to limit rises in NI, introduce exemptions for some new employers and raise the income tax threshold were also positive, even though they were watered-down from the Conservatives’ original pre-election promises.
“What we will be calling for now is a guarantee of genuine private sector input into the white paper on local economic growth that Mr Osborne mentioned. We want to see it focusing on smaller business-led innovation and jobs in regions that are likely to be affected by public sector job cuts,” he explains.
“We will also be lobbying the Government to make sure the ‘fuel price stabilizer’ Mr Osborne referred to becomes a reality. Extortionate petrol and diesel prices represent a huge inflationary problem for smaller firms and could threaten recovery if left unchecked,” Mr Orford concludes.
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Commenting on the report, Phil Orford, chief executive at the FPB, says, “I think many small business owners will be pleasantly surprised by the Budget. Not only did the Chancellor make all the right noises about supporting enterprise and smaller companies, he backed it up with concrete, tangible policies.”
He adds, “Obviously the VAT rise will have an impact on many smaller businesses, either directly or indirectly. However, the money to pay off the deficit has to come from somewhere and I expect most Forum members would rather stomach a VAT increase than a rise in other taxes, or even greater cuts in public spending.
“The one percent reduction in small companies’ tax is obviously more than welcome – it’s something we and the SME community have long called for. It also represents a two percent cut in real terms, as the previous Government had planned to increase it by a further percentage point,” he reveals.
Mr Orford continues, “The pledge for a wholesale review of employment law – quietly announced in the full Budget document – is also a highly welcome one. Our members frequently cite it as one of their main areas of concern so any moves to simplify and rebalance the regulations affecting smaller employers have got to be welcomed.”
Addressing the Government's proposals with regards to National Insurance (NI), he says, “The moves to limit rises in NI, introduce exemptions for some new employers and raise the income tax threshold were also positive, even though they were watered-down from the Conservatives’ original pre-election promises.
“What we will be calling for now is a guarantee of genuine private sector input into the white paper on local economic growth that Mr Osborne mentioned. We want to see it focusing on smaller business-led innovation and jobs in regions that are likely to be affected by public sector job cuts,” he explains.
“We will also be lobbying the Government to make sure the ‘fuel price stabilizer’ Mr Osborne referred to becomes a reality. Extortionate petrol and diesel prices represent a huge inflationary problem for smaller firms and could threaten recovery if left unchecked,” Mr Orford concludes.
What do you think of the Government's recent Budget report? Email your thoughts to .(JavaScript must be enabled to view this email address)
