A group of MPs and small businesses are tearing into Alistair Darling over an upcoming increase in corporation tax for small businesses.
The tax was announced by Gordon Brown in the 2007 Budget, and was controversial then, but now it is seen as cruel and unusual.
MPs, including Labour ones, have signed a petition to get the increase repealed while The Daily Mail and the Federation of Small Businesses are on the war path – demanding a tax cut!
Darling must be having sleepless nights and will have a job making anyone happy via his pre-Budget report later this month. Realistically, in the medium-to-long-term taxes can only go one way – and it ain’t down!
Look out for short-term dilluted fiscal stimulus followed by a big back lash at the first sign of a return to normalcy. Read more about it here.
I personally believe there is a will to offer some package to small business, but there is a distinct lack of ideas. This is because no-one in government has any real life experience of small businesses and therefore, lack empathy, depth and knowledge. I provided some ideas in my post a few weeks ago, at least it could be a start for them. http://www.power-to-the-people.co.uk/2008/10/dont-small-businesses-political/
or experience of the private sector! Mandelson has some, but he’s a rarity, even in BERR