Companies call on govt to freeze taxation at budget

Date: 18th March 2009

British companies have called on the government to freeze corporate taxation at the upcoming budget.

A survey by the Forum of Private Business (FPB) revealed that 82 per cent of firms are concerned that taxation will be increased next month to fund the VAT cut announced last November.

More than 90 per cent of businesses also condemned proposed rises in national insurance rates as either "damaging" or "very damaging".

Phil Orford, chief executive of the FPB, commented: "Rebuilding confidence is key to ensuring that small businesses are able to survive and ultimately, as the economy recovers, begin to grow again."

Other decisions highlighted by the forum included currency exchanges, energy costs, health and safety regulations and late payment provisions.

Research published by Bacs Payment Schemes earlier this month showed that the average amount owed to a typical small business last year was about £38,000.