Economic recovery threatened by 'punitive' tax regime

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Nascent economic recovery could be ‘choked off in its prime’ thanks to the UK’s burdensome tax regime, according to a recent poll of SMEs.

A survey of 350 small and medium sized businesses conducted by top 25 accountancy firm MacIntyre Hudson found that 72% believe the UK regime has become less competitive than other major economies in recent years. More than 82% believe tax rises now pose a greater threat to economic recovery than cuts in public spending. In spite of their concern, 97% believe the escalation of government debt will inevitably lead to further tax rises for many years to come.

“The message from business is clear. What was once a celebrated, competitive tax and regulatory regime has become increasingly burdensome, particularly for ambitious ind...

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Gina Dyer
Deputy Editor
Sift Media
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By nickja
04th Sep 2009 14:04

As with most quoted research,.....

....we're not told precisely what questions were asked and cannot know therefore whether, for example, they "led" respondents to answer in a certain way.    Until I see for myself what the questions were, I cannot determine whether the conclusions drawn are truly representative.

And where's the evidence to suggest that entrepreneurs will leave the country anyway?  Some have made a lot of noise but few seem to be leaving.

We can argue for ever over whether to cut spending or taxation but, if by cutting spending we store up problems for the future that will cost even more to put right, I know where my vote would be, eg if we repeat the errors of the '80s by restriciting spending for educating young people, we will inevitably repeat the outcome, namely a lost generation who have to be supported by the state and who, for lack of anything to do, get involved in drugs, crime and so on that requires yet more spending to deal with.    I'd rather spend to develop the next generation than cut in response to empty threats from a few higher rate taxpayers.

 

 

 

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04th Sep 2009 14:34

Entrepenuers leaving the UK

I can assure that they are and creating businesses that operate outside the UK.  In my small client base 2 are looking at exporting their businesses.  Not only does the country lose the business tax but also the jobs and NI and tax that employees pay.

Only a few need to leave to increase the tax burden on the rest that remain.

 

 

 

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04th Sep 2009 16:37

what's a small business ?

That's the problem, isn't it ?  We don't know who was surveyed or what the questions were. And I note that clients are looking at leaving the country....to set up businesses elsewhere or what ?

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