FPB backs Tory plans for simpler SME taxation

The Forum of Private Businesses (FPB) has backed the Conservative party's plans to simplify taxation of small to medium-sized enterprises (SMEs).

George Osborne, shadow chancellor of the exchequer, has called on the current government to reverse its decision to hike capital gains tax paid by entrepreneurs - a standpoint echoed by the FPB.

The forum has since launched its Think Smallest First campaign in a bid to reduce the tax burden on small businesses.

Phil Orford, chief executive of the FPB, claimed that law-makers should use tax reforms to help rather than undermine enterprises.

"The burden of tax is one of the most significant barriers to growth that businesses face. The shadow chancellor's proposals are, therefore, a welcome step in the right direction," he said.

Earlier this week, former minister Frank Field blamed a lack of support from Conservative party mambers for the failure of his proposal that cohabiting siblings should be afforded the same inheritance tax treatment as married couples.