WA71

Small business group makes Pre-Budget Report recommendations

The Forum of Private Business (FPB) has made a series of recommendations to Chancellor Gordon Brown, ahead of the Pre-Budget Report on 2 December.

The FPB's recommendations include:

• Revoking the increase in employer national insurance contributions, which has proved to have a prohibitive effect on growth
• Removing the nil rate starting band for corporation tax, and repealing the 19% rate on non-corporate distributions
• Replacing the current IR35 legislation with a simpler system of self-employment certification
• Addressing the uncertainties surrounding the settlements legislation.

Nick Goulding, FPB chief executive, said, 'Our message to the Treasury was that its policies must ensure control and flexibility in fiscal policy that supports growth, enterprise and productivity'.

To view the recommendations in full, visit the FPB website (www.fpb.org).

Meanwhile, the Institute of Directors (IoD) has warned that the UK's long-term economic growth is being threatened by the Chancellor's strategies on taxation and spending.

Graeme Leach of the IoD said, 'In an advanced economy such as the UK, extra public spending is unlikely to increase long term growth, but extra taxation is likely to reduce it'.

'In only a few years, a combination of tax and demographic influences is likely to push trend GDP growth towards 2%, unless there is an offsetting increase in productivity', he added.

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