As the day of the Autumn Statement draws nearer, UK Small and Medium Enterprises call for cuts in Corporation Tax and VAT, to help them achieve growth. The 29th November will see the chancellor reveal his Autumn Statement to the UK, and businesses are looking for tax cuts.
Although Corporation Tax was cut earlier in 2011, SMEs are calling for further cuts to help growth. The latest SME Trends Index by Hilton-Baird Financial Solutions surveyed 417 businesses, with 21 percent calling for further reductions of Corporation Tax. Further study of the survey, which is carried out twice a year, showed that almost 20 percent consider cutting the rate of VAT to be the most effective action for boosting UK business growth. The businesses are also calling for cuts in income tax, with eight percent wanting higher personal allowances.
The plans announced in October, to increase the level of quantitative easing by £75 billion were at the top of the agenda for most business owners and directors, to aid growth. According to the managing director of Hilton-Baird Financial Solutions, Evette Orams the government has cut public spending to boost growth and reduce the budget deficit. However, she points out that growth has registered at just one percent in the first three quarters of the year. As a result, businesses are calling for an alternative strategy from the government. She also pointed out that SMEs have suffered greatly from the cuts, and face further difficulties with increased late payments and problems obtaining funding using traditional methods.
SMEs will be looking to the government to ease the pressure on Tuesday 29th November 2011.
Want to learn more?
Subscribe to our newsletter to get accounting tips like this right to your inbox