Looking ahead to next Tuesday’s Spring Statement, Federation
of Small Businesses (FSB) National Chairman Mike Cherry, said:
“The move to having only one big fiscal event a year is the right
one. With small business confidence dropping over the last few
months amid rising costs, weak economic growth and flagging
consumer demand, chopping and changing the tax regime every six
months is the last thing small businesses need. “Small firms lose
£5,000 and 15 working days a year...Request free trial
Looking ahead to next Tuesday’s Spring
Statement, Federation of Small Businesses (FSB)
National Chairman Mike Cherry, said:
“The move to having only one big fiscal event a year is the
right one. With small business confidence dropping over the last
few months amid rising costs, weak economic growth and flagging
consumer demand, chopping and changing the tax regime every six
months is the last thing small businesses need.
“Small firms lose £5,000 and 15 working days a year to tax
compliance every year on average. The complexity of the tax
compliance process is a huge drain on national productivity. It’s
good to see the Chancellor making things easier with only one set
of tax changes every year. We now need to see a full review of the
tax system that focuses on the cost of compliance to small
firms.
“Small businesses have a critical role to play in delivering
a successful economy post-Brexit. We
shouldn’t have an environment where paperwork from HMRC threatens
that success.
“The Spring Statement marks an opportunity to reinforce
commitment to promises already made. That includes refunds for
those hit by the unfair Staircase
Tax and the abolition
of Class II National Insurance
Contributions.
“Equally, too many small firms are still waiting on delivery
of the ‘emergency’ business
rates hardship fund launched by the Chancellor
at his last spring address.
“A chunk of the £300 million fund could well never reach
small firms in need because councils have failed to get their
houses in order. The Treasury and DCLG need to ensure that funding
isn’t lost once we start the new tax year. No doubt for some small
firms trying to keep their heads above water over the last 12
months, the support will now be too little too late.
“The Spring Statement is also an opportunity for the
Chancellor to take a stand on the issues that matter to small
firms. Carillion’s demise highlights the dangers of the pernicious
supply chain bullying culture that exists among our big corporates,
not least the scourge of late
payments.
“The legislative changes coming down the line aimed at
tackling our late payment crisis alone are not enough. What we need
to see is a fundamental cultural shift across British boardrooms,
with genuine consideration given to supply chain issues at the
highest level day in, day out. We hope to see the Chancellor taking
the lead on this next week.”
