Firms call for taxation freeze on falling retail sales

Date: 26th March 2009

Businesses have once more called on the government to freeze corporation tax after data showed retail sales have stalled.

Figures from the Office for National Statistics revealed that annual sales growth stagnated at 0.4 per cent in February, compared to the relatively bountiful 3.6 per cent increase seen in January.

In response, the British Chambers of Commerce (BCC) reiterated its stance on business taxation, claiming the government can no longer justify any rise.

Chief economist at the BCC, David Kern, said: "These worrying figures confirm the depth of the recession.

"The government must focus on removing much of the regulatory burden on business and on avoiding damaging measures like the planned increase in business rates."

Earlier in the week, the Confederation of British Industry claimed that any increase in corporation tax would be "a poke in the eye" for businesses after inflation fell to zero.