FPB: Govt should make it easier for small firms to cope with VAT rises

Date: 7th January 2011

Small businesses owners operating across the UK could be among those interested in the recent comments of one leading industry body.

The Forum of Private Business (FPB) has called on the government to make life easier for the country's smaller enterprises.

It comes as the rate of VAT was increased earlier this week from 17.5 per cent to 20 per cent.

According to the organisation, tighter margins at smaller firms mean they are likely to feel the impact of the rise more than their larger counterparts.

A spokesman for the FPB, said: "This government has been very vocal about its desire for smaller businesses to spearhead the recovery of the process. If the government is serious about that, it does need to do more to make life easier for small businesses.

"So maybe as well as helping with the VAT, we would argue for wholesale review of all legal legislation that affects small businesses to see if there are areas [in the legislation] where smaller businesses can be removed."

Posted by Jacob Williams