Tax is 'number once concern for businesses'

High tax is the number one concern of British business owners, a new survey has revealed.

According to the research, commissioned by the British Chambers of Commerce (BCC), business owners believe the government should prioritise issues such as taxation, red tape and transport in order to help companies battle against the credit crunch.

It emerged that 85 per cent of company bosses believe politicians are out of touch when it comes to dealing with the issues affecting them, with 36 per cent of business owners claiming current economic conditions had halted their plans for business expansion.

Commenting on the findings, the BCC's director general David Frost said: "High levels of tax are clearly the number one problem. The main competitors for British firms are no longer in the neighbouring streets or towns but halfway around the world in countries that have far lower rates of tax."

Mr Frost argued that the government must cut taxes if British businesses are to remain competitive.

Last week the BCC criticised the NUT's teachers strike, claiming that business would be affected to the tune of £68 million through lost working hours.