FSB calls for targeted VAT cuts

Date: 19th July 2011

Small businesses operating in various UK sectors could be among those encouraged by the recent calls of one leading industry body.

The Federation of Small Businesses (FSB) has urged the government to introduce targeted VAT cuts in order to restore growth to the UK's economy.

According to the organisation, the coalition needs to rethink its growth strategy as recent research shows that small business confidence has "fallen dramatically".

The body claims that VAT cuts in the hard hit construction and tourism sectors would encourage increased consumer spending.

John Walker, national chairman of the FSB, explained: "In an economy characterised by high unemployment and muted demand, more needs to be done to encourage businesses to take on staff and grow their business so that the recovery can really get back on track.

"We must see a cut in VAT to five per cent in the construction and tourism sectors to boost consumer demand. It is tangible measures like this that will actually help small businesses to be able to grow their businesses and grow the economy."

Posted by Emily Smith