Anger at 'tax hike aimed at small businesses' [BT broadband office]

Anger at 'tax hike aimed at small businesses'

Posted 21 March 2007 at 3:04PM by Simon Dickson in Investment and finance

The Federation of Small Businesses is less than happy at the Chancellor's 2007 budget. 'After some welcome initiatives for our members,' says the organisation's chairman Carol Undy, 'he throws it all away. Corporation tax was cut for large firms but increased for smaller ones. A cut in income tax is welcome but does not fully offset the dismay felt by small firms despite the other allowances that he has offered.'

To be fair to Gordon Brown, he did say quite clearly that the budget was 'broadly neutral overall' - and certainly some of the experts appearing on the TV news channels are saying that the rise in the small business rate will be offset for many by other benefits and credits.

BBC business editor Robert Peston reckons: 'A small company that invests a fair chunk of its profits will probably be better off. But those that don't invest will definitely be poorer.'

Back with the FSB, Mrs Undy also warned that the increased road tax for larger-engined vehicles 'will also hit small businesses that use such a car or van for their business needs.'

But she did congratulate the Chancellor for accepting FSB proposals to reduce the business rate relief on empty commercial property which, as Mr Brown reflected in his speech, could ultimately lead to higher rents in areas with highest demand. Industrial premises will only receive rate relief for six months, and offices and retail space for three months.

Tags: budget, corporation tax, fsb, gordon brown

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Comments

1. At March 22, 2007 9:25 AM, Mr Brian Ellis wrote:

As is always the case, the rich get even richer, the poor get even poorer, and we the working people of Britain pay for it all. Thank you Mr Brown.

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