Tax cuts 'key to business growth', claims FPB
The lobby group has put forward a plethora of proposed tax changes, which it claims will promote 'responsible growth' ahead of the UK’s anticipated recovery from the recession.
Furthermore, the FPB claims that the country's prospects for sustained economic growth could be jeopardised unless small businesses are provided with the support they need to survive and develop.
'There is still a long and difficult road ahead of us, but small businesses are key drivers of the economy and the Government must create a tax environment in which they can thrive,' said the FPB's Chief Executive, Phil Orford.
'That means tax relief in specific areas that would help to foster cash flow, innovation and employment opportunities so that small businesses are able to seize the opportunities that will emerge as the economy emerges from recession.'
The measures set out by the FPB include: a reversal of plans to increase small firms' Corporation Tax, which it suggests should instead be cut to 20%; a reduction in VAT to 5% on selected labour-intensive services; and a 12-month reduction in National Insurance Contributions (NICs) for businesses with fewer than 10 employees which take on new staff.
And with less than half of SMEs in England taking up Small Business Rate Relief, the FPB wants to see eligible firms automatically enrolled into the scheme.