Businesses call on govt to scrap taxation bill

Date: 13th March 2009

Struggling small businesses have called on the government to scrap legislation which could see corporate taxation increase.

The Confederation of British Industry (CBI) has warned MPs that passing the Business Rates Supplement Bill could lead to a surge in company bankruptcies.

If the bill were to be passed by parliament, it would give regional councils the power to levy additional taxation on businesses for infrastructure projects judged to boost local economies.

Deputy director general at the CBI, John Cridland, said: "These extra taxes on business could harm local economies by placing extra financial demands on firms when they can least afford it.

"They could make the difference between companies surviving the downturn or going to the wall."

Earlier in March, the British Retail Consortium called on the government to extend the temporary 2.5 point VAT cut by an additional month to support high street trading.