Business wants better tax deal
BUSINESS wants a better deal from the next Government, whichever party gains power. Top company directors and industry figures today called on politicians to ease the burden on business after a hefty rise in the tax take from companies over the past seven years.
The CBI and the British Chambers of Commerce warned that Britain's competitiveness risked being undermined by further tax rises.
CBI director-general, Sir Digby Jones, said: 'We are at five minutes to midnight of losing our reputation as a tax-competitive economy for businesses. We must not see any more rises in tax on business or companies will vote with their feet and move to India, China or the US.'
Jones said the tax burden on companies had risen £57bn in the past seven years, thanks to National Insurance increases, the climate change levy, taxes on pension funds and the aggregates tax.
Aidan O'Carroll, senior tax partner at accountants Ernst & Young, said the next Government had to consider the needs of businesses before setting the strategy for the next five years.
He declared: 'Businesses are already suffering a period of uncertainty over a number of complex and controversial provisions that were omitted from the Finance Act when it received Royal Assent on 7 April. There is a real danger that the Government will see this as a mopping up exercise and implement those provisions without proper consideration.
'Surprises are the last thing that businesses need so, whatever the outcome of the election, the next Government must recognise the importance of consistency. It is imperative that further active consultation with businesses and their advisers is undertaken to ensure that these measures will actually work.
'The cost of neglecting to do this could well be a tax regime that penalises UK businesses together with the associated risk that international competitiveness will suffer as a result.'
David Frost, head of the British Chambers of Commerce, said that the new Government should kill off speculation that local authorities would have the power to set business rates, a move likely to lead to big rises.
'The new Government has to understand business is facing a difficult period, not least with the tidal wave of competition from the Far East and a slowdown in the global economy.'
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