Small firms seek govt tax initiatives

26th February 2013 | News

A new survey has confirmed that small firms in the UK are keen to see the government offer further support to encourage growth.

The UK SME Business Outlook Survey found that as many as 60 per cent of small company owners are looking for further government tax initiatives this year.

What's more, the poll found that business leaders are keen to see the coalition reduce regulations in a bid to stimulate economic growth.

There is, however, a distinct lack of trust in government-backed organisations. Indeed, a mere two per cent of business leaders turn to the state for business advice, instead preferring to speak to a business peer.

The survey also found that the business community intends to expand in the coming 12 months, with 38 per cent of firms planning to increase their headcount in 2013.

David Taylor, Chief Executive Officer of HB Prime Advantage, was broadly optimistic about the state of the business industry.

"Business owners are aware of the difficulties of running businesses in the current economic climate and are making plans to explore new markets this year to ensure they stay ahead of competitors and grow sales," Mr Taylor explained.

"With the recent leap towards e-commerce and the slow disintegration of brick and mortar retailing, it is not surprising that 45 per cent of participants believe that an increase in online sales is the current biggest opportunity for SMEs."

In January, the Confederation of British Industry (CBI) called on the government to do even more to help boost private investment and to deliver expansion for small firms.

Owing to the fact that government spending remains squeezed, it is only right that the private sector steps up and helps out, the CBI said.

Rhian Kelly, Director for Business Environment at the CBI, argued that the country cannot afford any further delay in "getting spades into the ground".

Posted by Emily Smith