FPB calls on politicians to consider corporation tax

Date: 22nd April 2008

MPs should give the same attention to the corporation tax rise as they are to the abolition of the 10p tax rate, the Forum of Private Business (FPB) has said.

Commenting on the controversial decision to scrap the 10p rate, the FPB's chief executive, Phil Orford, said that small businesses are under threat from the move to increase corporation tax from 19 to 21 per cent.

The hike - which is to be extended to 22 per cent in April 2009 - is accompanied by a cut in the higher rate paid by larger businesses from 30 per cent to 22 per cent, Mr Orford pointed out.

"It is not only lower-income individuals who are being adversely affected by this government's tax regime," said Mr Orford.

"Every small business has been targeted by an increase in direct taxation."

The FPB recently drew attention to a survey by Equifax which discovered that 91 per cent of politicians had less than a decade of business experience.