Category: Contractor Industry News

Chancellor George Osborn should put small businesses first in his emergency Budget next week, the Federation of Small Businesses (FSB) has said.

The body said the difficult decisions needed to tackle the debt must be tempered with measures to inspire confidence in the future.

It warned that a VAT increase would cost small businesses and damage their cash flow, and pointed out that a major rise in Capital Gains Tax could stifle long-term investment.

Steps to cut the deficit must not be taken at the expense of the continuing economic recovery or lead to a hike in taxes, the FSB continued.

"The chancellor must use the Budget to set out his pro-business credentials and offer something to stimulate growth," commented FSB national chairman John Walker.

"It is imperative that any changes to Capital Gains Tax or VAT go hand-in-hand with an ambitious plan for helping economic growth through allowing small firms to employ, grow, invest and innovate."

The emergency Budget is planned for Tuesday, June 22nd.

Posted by Sarah Putt