FSB call for tax reductions not freezes

The Federation of Small Businesses (FSB) has dismissed yesterday's budget as uninspiring, arguing that small businesses would see through the Chancellor's blend of rehashed announcements and tax freezes.

FSB's Northern Ireland Financial Affairs Spokesperson, John Hurson maintained that freezing taxes was not good enough, adding: "The Chancellor has acknowledged that the odds are stacking up against small firms, but has done nothing to address tax inequalities, rising business costs and escalating liability insurance premiums - the three key issues facing small firms.

"He has recognised that over the next financial year growth in manufacturing sector will be less than 1%. A scattering of measures pledged to encourage enterprise will make no difference against the backdrop of an £8bn increase in National Insurance."

Mr Hurson said the re-structuring of stamp duty was clearly designed to raise revenue as well as combat tax avoidance it would result in increases in real terms. However, small firms will be relieved by the exemption on leases of up to £150,000.

"The Chancellor claims that this is a budget for Enterprise, Flexibility and Fairness. We can see little in it for enterprise and were looking for flexibility but got the status quo. The Chancellor also missed the opportunity to deliver fairness for all small firms, failing to unravel red tape or help the self employed," he concluded.

(MB)