Labour tax proposals divide business

Proposals by Labour leader Ed Miliband to increase corporation tax (CT) and cut business rates for small business if the party wins the next election have received a mixed reaction from tax advisers and business groups.

During his speech at Labour’s party conference in Brighton yesterday, Miliband promised to reverse a planned cut in CT from 21% to 20%, due to take effect in April 2015.

He also offered an £800m business rates tax break to smaller companies.

Chris Sanger, head of tax policy at EY, said the announcement on CT was a departure from the recent “orthodoxy” of...

Continued...

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Comments

Sound bite Tax policies    2 thanks

Ian McTernan CTA | | Permalink

More sound bite tax policies from the party that almost ruined the country and left us in enormous debt.

It's perceived that an attack on 'big business' will win them votes, so they can point out to their supporters that they are being 'tough on big businesses' while offering 'help for the little guy'.

The fact is that for many small businesses rates and rent are what kills them off.  Slowing down the growth in the cost of rates isn't really going to help much, but makes for a good sound bite.

Businesses have for many years been bled dry by the Treasury who see them as an easy target, hence the huge amounts raised by business rates (for no benefit of the company at all).

If business rates were applied to domestic properties there would be a revolution in short order.

Governments of all persuasions need to stop strangling small businesses with endless regulations and huge tax bills- but then wealth creators are continuously attacked by the politics of envy (Labour supporters, usually in safe gold plated pensionable jobs)so we shouldn't really be surprised.

Maybe we should send out MP's of all political parties on 3 month secondments during the summer parliamentary recess to real small businesses so they can feel the effect of their policies first hand and see the problems businesses face every day.

As for high streets, they have been priced out of the market by excessive rates, employers NIC and a myriad of other costs.

Wrong...    3 thanks

Roland St Clere... | | Permalink

Labour tried to make things better for the less well off in our country.

They made many errors including Iraq and reducing civil liberties .

Nevertheless unlike Flashman who cares not a jot for the many people who are struggling to meet their bills Labour at least is trying to address these and other problems.  

 

How did that work    1 thanks

The Black Knight | | Permalink

Roland St Clere-Smithe wrote:

Labour tried to make things better for the less well off in our country.

They made many errors including Iraq and reducing civil liberties .

Nevertheless unlike Flashman who cares not a jot for the many people who are struggling to meet their bills Labour at least is trying to address these and other problems.  

 

Bankrupting the country is hardly helping the less well off.

Unfortunately the small business workers/owners work harder have more risk, pay more tax and earn less after having to pay for the freeloaders that are on a fantastic benefits and tax package for sitting at home so long as they breed lots.

I am concerned that the floating voters will be bribed by this policy (which I think is a good idea and will benefit small business) to tip the balance and give Labour a second chance at bankrupting the UK. I am sure they will finish the job this time.

Unfortunately we are left voting for the lesser idiot in some Freudian disaster avoidance strategy instead of voting for something useful and productive that might benefit all sectors of society.

Who would vote for any one of them if you had a choice? that Ed Balls is just unbelievable and is only there to make Cameron look normal.

 

Actually I can't think of anything good that Labour did do! We would be better off with anarchy or at least a no change government! I would vote for repeal of everything they did.

Was that the fault of the labour governmemt    3 thanks

Roland St Clere... | | Permalink

Or we we all the victims of one of the greatest heists in history perpetrated by bankers, energy companies, privatised rail companies and the rest....

Government

The Black Knight | | Permalink

The clue is in the Job title.

The disaster is all Labour's fault, Not the greedy bankers not the rich people, not the child tax credits factory.

They over taxed and regulated the legitimate to the point of strangulation.Didn't police the errant and encouraged tax and other financial fraud by refusing to admit it existed and designing systems that could be taken advantage of. Then overspent and borrowed to cover up their incompetence. Bought their votes by overpaying government workers and non workers. Teemed and laded, over inflated the economic figures then blamed it on the Bankers (the biggest earners for UK PLC) and anyone else they could think of.

You are right it does look like a massive fraud.

Did they learn these commercial practices from Enron or Leeson I wonder.

The Black Knight    2 thanks

justsotax | | Permalink

you seem under the impression that those who servie us as MP's are doing it for the good of the country....whilst you may well be right that Labour are the sole cause of all that is bad in the world...i would warn you against thinking that the tories, libdems or any other political party have got your best interests at heart....(well unless you are a banker...GO is fitghing there corner...and too right....why should they be affected by the events in the real world....they deserve the money - they are the one single beacon of light in our economy....yeah right...)  

Certainly not    1 thanks

The Black Knight | | Permalink

justsotax wrote:

you seem under the impression that those who servie us as MP's are doing it for the good of the country....whilst you may well be right that Labour are the sole cause of all that is bad in the world...i would warn you against thinking that the tories, libdems or any other political party have got your best interests at heart....(well unless you are a banker...GO is fitghing there corner...and too right....why should they be affected by the events in the real world....they deserve the money - they are the one single beacon of light in our economy....yeah right...)  

Certainly not! I am under the impression that MP's OUGHT to be acting in the best interests of the country and it's subjects.

The thought is a little advanced for this century I admit.

I have no love of Bankers either but blaming them for the economic crisis is akin to blaming the bull for wrecking the china when you took him in the shop.

A world wide recession (well at least in the countries that had the same policies) is akin to saying "well he did it miss"

It is about time these idiots took some responsibility for their own actions.

Would you leave your wallet with a known thief when he can't see what he did wrong the last time he borrowed without your consent.

Giving with one hand ...

vstrad | | Permalink

Yes, lets help small businesses to grow, right up until they become large businesses, at which point we will regard them as the enemy, increase their taxes and publicly insult them (Amazon, Starbucks, Google, etc.) for their effrontery in creating jobs and prosperity.

johnjenkins's picture

Whatever

johnjenkins | | Permalink

Labour or Conservatives say it won't make any difference to the outcome of the next GE. Most people, these days are used to politicians crap. It will be an all party coalition.The electorate are frightened of voting in one of the big parties with a large majority as both Tory and Labour rule ended in a farce. What Ed should have said was "we will abolish business rates for the first 3 years of a business life and keep the corp tax cut".