Scottish small businesses would prefer red tape cut to lower taxes

Date: 21st December 2009

Small business owners in Scotland would rather see a reduction in bureaucratic 'red tape' than a reduction in taxation, a new study has found.

Almost 20 per cent of business owners and leaders polled by the Clydesdale Bank stated that a reduction in the current rate of tax would give them the biggest boost over the next 12 months.

In comparison, 25 per cent stated a preference for more-simplified paperwork and fewer rules and regulations, with such a cut in red tape seen to be the most effective means of helping firms of all sizes through the tough economic times.

The study also found that just 15 per cent of Scottish businesses would like to see the temporary cut in the rate of VAT to 15 per cent made permanent, suggesting most are behind the plans to put the rate back up to 17.5 per cent in the New Year.

Commenting on the findings, Scott McKerracher, Clydesdale Bank's regional director for Scotland suggested that measures to help businesses get through the downturn "may not have gone far enough".

"The effects of a recession can be felt long after the end of the downturn and this research shows that businesses feel government support should be long term, practical and more far-reaching," he said.