Firms in 'lukewarm' response to pre-budget

Date: 25th November 2008

Businesses have responded indifferently to yesterdays (November 24th) pre-budget report, it has been revealed.

While chancellor Alistair Darling's announcement included cuts in VAT and other taxation breaks, the London Chamber of Commerce and Industry (LCCI) does not feel as though the measures went far enough.

In particular, the group expressed disappointment at the introduction of the new 45p income taxation band for the highest earners, which would not come into force until 2011.

Chief executive of the LCCI, Colin Stanbridge, said: "Adding a new tax band will disproportionately affect London because we have by far the highest earners in the UK.

"There were a number of areas where the government made a stab at reform but stopped short of making the kind of changes that would really have made a difference [to small firms]."

Despite these concerns, the LCCI said that it was grateful for the decision not to raise corporate taxation and the reprieve of rates on disused commercial buildings.

The LCCI is the capital's biggest business organisation, with around 3,000 member companies across a range of sectors.