Birmingham businesses speak out over tax concerns

Date: 22nd July 2011

Small businesses owners in the Midlands are calling on ministers to give them a break from 'crippling' levels of corporate taxation.

Recently, Hudson's Coffee House, which had been a fixture of Birmingham's North Western Arcade for more than two decades, was forced to close its doors for a final time due to financial difficulties.

On the back of this, and with several other small businesses operating in the city's hospitality sector facing similar economic troubles, one award-winning entrepreneur and restaurant owner has urged the government to cut tax rates.

Speaking to the Birmingham Post, Daniel Anderson argued that, at 20 per cent, the rate of VAT makes the UK the second-least-competitive country in the EU, with this not just bad news for small businesses, but also for the city as a whole.

"It is badly affecting Birmingham's reputation and harming the city's ability to be taken seriously as a quality destination," he explained.

These comments come just days after the government announced it is to halt VAT subsidies to the Isle of Man.

Posted by Emily Smith