Business groups have slammed the Chancellor’s latest Budget claiming it will ‘deliver nothing’ for small firms or enterprise.
The Forum of Private Business (FPB) made the comments in response to Gordon Brown’s announcement that the rate of Corporation Tax paid by smaller firms will rise from 19% to 22% in 2009.
The Chancellor said the rise was needed to reduce the difference between small companies and the self-employed, but that the money would be put back into ‘legitimate businesses investing for the future’.
However, FPB chief executive Nick Goulding said today’s Budget did ‘little but create more red tape for small businesses to deal with’.
“The Chancellor has used smoke and mirrors to disguise the fact that there is nothing in this Budget to support small businesses. In fact the resulting confusion created by some of his initiatives will serve only to increase the red tape burden,” he said.
Goulding argued the new measures, including a 2% reduction in general Corporation Tax, would only deliver for larger firms.
"The reduction in the main rate of Corporation Tax will benefit larger firms, not the smaller businesses that make up the majority of the private sector. The changes made for smaller firms will serve only to further burden them."
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