New chancellor urged to cut tax and red tape

Small businesses have called on the new chancellor to make the reduction of tax and red tape a top priority.

Former chancellor and PM-designate Gordon Brown is expected to announce his new cabinet later today when Tony Blair officially stands down as prime minister.

Several of the nationals have tipped secretary of state for trade and industry Alistair Darling to be the new governor of the Treasury.

However, small business lobby group the Forum of Private Business (FPB) has warned Brown’s successor that the needs of the small business sector must be high on the agenda.

In a recent survey of FPB members, more than 43% thought that reducing the tax burden on small businesses should be the priority, particularly following Brown’s hike of the small firms’ corporate tax rate in his final Budget earlier this year.

Reducing the administrative burden on small firms came a close second, with 29% saying this should be top of the new chancellor’s small business agenda.

“The study showed that the majority of respondents thought the economy hadn’t been run by Brown in a way that had benefited their company,” said Rebecca Leavers, FPB research manager.

In a separate study by business advisers at Grant Thornton, red tape was identified as the biggest constraint to business growth.

Alysoun Stewart, head of Grant Thornton’s Strategic Services Group, said: “Despite establishing the Better Regulation Commission (BRC) in 2005, it seems the level of regulatory constraint on UK business is still a major barrier to growth.

“We would therefore urge the new prime minister to accelerate the minimisation of red tape, and increase the size and power of the BRC to reduce what business leaders identify as overly lengthy and unnecessary legislation.”

© Crimson Business Ltd. 2007