Budget is "hugely significant" for small businesses

Date: 7th March 2008

Small businesses will be "significantly" affected by next week's Budget - with business investment allowances set to be cut and taxes to increase, the Times reports.

Companies taking over £300,000 in profits will see their tax decrease slightly, as headline corporation tax rates are cut from 30p to 28p.

The Confederation of British Industry (CBI) claims members, particularly small family-run businesses, are angered by the proposed changes.

"Their personal income and business tax is all mixed up. What affects the business, affects the family. It's a very emotional time," comments Lucy Findley, CBI head of enterprise policy.

She adds that this year's Budget will have a major impact on small firms and claims that reforms could lead to "a lack of trust" between small business owners and the government.

A study by Alliance and Leicester this week revealed that 70 per cent of bosses are apprehensive about next week.

The bank claims small business owners can prepare for any obstacles with financial planning and shopping around for more competitive utility providers.

It also emerged that 64 per cent of bosses deal with Budget changes by seeking the advice of a small business accountant.