Firms call on govt to bin taxation increases

Date: 23rd March 2009

Britain's small businesses have once again demanded that the government withdraw proposals to increase business taxation.

Under the flag of the Forum of Private Business (FPB), companies have warned Westminster not to enforce the small business multiplier at this year's budget statement, which would equate to a five per cent rise in taxation.

According to the organisation, the government cannot qualify using inflation data from September 2008 to calculate 2009's taxation increase.

Chief executive of the FPB, Phil Orford, said: "Increases to rate charges and the spectre of supplementary business rates mean small businesses face another considerable cost burden at a time they can least afford it."

He added that any rise to corporate taxation "cannot be justified" when firms are feeling the combined pain of falling sales, deflation and recession.

Earlier in March, the Federation of Small Businesses revealed that about a third of smaller firms are being impacted by banks raising charges on loans and overdrafts.