Darling's proposals 'not effective', says BCC

Date: 26th November 2008

An expert on the UK's business start-ups sector has dismissed the recent taxation changes as "not effective", according to SmallBusiness.co.uk.

David Kern, chief economist at the British Chambers of Commerce, told the website that more needed to be done to stimulate the economy for British small businesses.

In particular, he expressed concerns over the levels of borrowing announced by the government at the pre-budget speech, claiming that it will be burden on taxation payers.

Mr Kern told SmallBusiness.co.uk: "A cut in corporation tax, national insurance and other taxes paid by small businesses would have been more effective ways of stimulating the economy, as it would have put money directly into people's pockets."

He added that a reduction in VAT was not the most effective way of achieving this, as it was not guaranteed that consumers would spend more.

Earlier in the week, representatives at the London Chamber of Commerce and Industry stated that they did not feel as though the pre-budget measures went far enough.