Small businesses want louder voice over tax concerns

Date: 30th October 2009

Small business owners have called for existing system of taxation to be modified so as to further encourage innovation and growth.

Just this week, the Federation of Small Businesses (FSB) urged the government not to raise the taxation burden being faced by smaller enterprises across the UK, with any increase likely to be counter-productive to overall economic recovery.

At the same time, around two in three of the businesses polled for the latest Enterprising UK report from PricewaterhouseCoopers (PwC) stated a belief that the current tax regime did not promote enterprise.

As well as having a more effective voice in government, most small business owners would like to see tax rules relaxed so as to encourage innovation and growth rather than simply receiving handouts, the study also found.

"Reducing tax rates would be a challenge in the current economic climate, but a reduction in the rate of change and uncertainty should be easier to deliver," noted Mary Monfries, head of UK private business at PwC.

The FSB has also warned that the planned increase to employers' National Insurance Contributions could also prompt many smaller firms to consider laying people off.