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Small businesses condemn government 'insincerity'

Posted 29 March 2007 at 9:28AM by Simon Dickson in Doing business online

Members of the UK's Federation of Small Businesses have condemned government policy towards self-employment as 'insincere'.

Meeting in Belfast for their annual conference, FSB members voted by a huge majority in favour of a motion criticising HMRC's 'increasingly aggressive policy in re-classifying self-employed contractors as employees', whilst at the same time encouraging people to become self-employed through fiscal incentives and training packages.

The conference began just days after Gordon Brown's announcement of an increase in the small business rate of corporation tax, in an attempt to deal with 'individuals artificially incorporating as small companies to avoid paying their due share of tax'.

Addressing the opening morning of the conference, the Conservatives' George Osborne had described the Budget as 'a real kick in the teeth for small business'. The Labour government, said the shadow chancellor, had given Britain the largest increase in tax legislation of any country in the world, second only to India. And he promised 'clear proposals to embed a more business-oriented culture throughout government, so civil servants really understand the impact of new regulations on the small business community.'

Mr Osborne's remarks were welcomed by John Walker, the FSB's national policy chairman. 'Small firms have no HR or finance department and do not have the time to deal with the complex tax regime that we have in the UK,' he said. 'It is very pleasing to hear that it is a priority for the Conservatives to tackle.' The FSB, Mr Walker continued, was 'happy to work with any mainstream political party that supports the needs of small businesses'.

The conference elected John Wright, a North East management and training consultant, as the FSB's new chairman, taking over from Carol Undy. 'After this week's Budget it is clear that we have work to do to persuade decision-makers of the vital role that small businesses play in the UK economy,' he said; 'that is my priority as I set to work on our members' behalf.'

Tags: budget, corporation tax, fsb, george osborne

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