MPs join protest against business tax policy

Date: 5th August 2008

The backbench protest against Labour's small business taxation policy has gained further momentum.

Two east Lancashire Labour MPs have joined the protest against the party's plans to charge owners of empty industrial sites the full national non-domestic rates (NNDR) after six months, when they were previously exempt.

The movement of 35 members is led by Halifax MP Linda Riordan, who believes small businesses will be hit hard.

"Empty property rate relief is a tool used to stimulate investment and growth in the property market during times of economic difficulty.

"The withdrawal of the relief is having unintended consequences such as creating unnecessary financial hardship for people with small businesses."

A recent survey by CCH, a company that provides tax and business law information, of 150 accountants found that over 53 per cent thought that a reduced small corporation tax would be for the good of the economy.