Entrepreneurs say VAT cut has been of little help

Date: 15th June 2009

Ninety per cent of entrepreneurs have said the government reduction in VAT has had no positive effect on their business.

Recent research conducted by Tenon has indicated that those who run their own firms would have preferred an alternative tax break.

Of those surveyed, 55 per cent felt a reduction in National Insurance Contributions would have been the most beneficial form of tax cut, while 46 per cent would have liked to have seen corporation tax reduced.

Andrew Jupp, head of tax at Tenon, said: "[Entrepreneurs] haven't felt the benefit of any recent Government initiatives, despite being the lifeblood of the British economy."

"The government needs to listen to the entrepreneurial community and start implementing those measures that will be of most help."

The highest proportion of entrepreneurs who believed the VAT cut was a benefit to their business was in Scotland, where 21 per cent were happy with the government decision.