Small firms say VAT hike will be 'bad for business'

Date: 22nd June 2010

Small businesses in the UK have voiced their concerns about what an increase in VAT would mean for their enterprises.

Increasing the rate of VAT in the UK would deliver a "blow" to the country's smaller businesses, according to a new report.

A recently-published survey from comparison website uSwitch has revealed that 87 per cent of small enterprises in the UK believe that increasing VAT will be "bad for business".

According to the study, one-third of the respondents believe the move will have a direct and negative effect on consumer spending.

The figures come as chancellor George Osborne prepares to deliver the coalition government's first Emergency Budget later today (June 22nd).

Jake Ridge, small business energy expert at uSwitchforbusiness.com, said: "Small firms seem to be very clear about one thing - a VAT rise will be bad for business.

"They need support from the government to help safeguard their future - a VAT hike could be one blow too many for businesses who have faced the brunt of the recession and are now battling their way to recovery."

Posted by Jacob Williams