Gordon Brown Urged To Rethink Business Tax Plan

by Robert Lee, Tax-News.com, London

19 February 2003

Responding to pledges made by the UK Chancellor at a Labour conference in Glasgow last week, the Forum of Private Business (FPB) has urged Mr Brown to scrap the impending increase in National Insurance Contributions (NICs) rather than just 'tinkering' with other less important measures.

In his speech last week, Mr Brown promised to provide new incentives for entrepreneurs and SMEs in the UK by cutting start-up cosrs and increasing benefits for invesrors and recruiters. However, in a statement released on Monday, the FPB warned that such moves could actually increase the burden on small businesses.

'These are laudable suggestions but, depending on what is actually put forward in the budget, they could add to the burden of red tape for small businesses,' Garry Parker, director of public affairs at the FPB explained, continuing:

'Small businesses have enough red tape to deal with already without yet another scheme being introduced which will result in more form filling and claiming to get a tax credit.'

According to a survey of its members recently conducted by the Forum of Private Business, nearly 90% are opposed to the NIC hike, due to take effect in April. The organisation has also called for the integration of PAYE and NICs administration in order to reduce paperwork.

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