A cut in fuel duty and an increase in the personal tax threshold would be the most desirable Budget moves for small firms, a survey has revealed.
A survey of members of the Federation of Small Businesses (FSB) found that two-thirds (66%) of respondents believe a reduction in petrol tax would encourage business growth, while 36% said they would like the income tax allowance to rise.
The vast majority (93%) of FSB members expressed a desire for the new coalition Government to outline 'robust' plans for reducing the UK's fiscal deficit, and 41% said the extension to the Time to Pay scheme announced in the March Budget would have a positive impact on firms’ prospects. Legislation to force big companies to pay invoices within 30 days would provide a boost, said 46% of the 1,319 businesses polled.
The results of the survey were published this week, following the announcement by the Chancellor, George Osborne, of policies to enhance the UK’s fiscal credibility, including the introduction of an independent Office for Budget Responsibility, which is intended to ‘remove the [Treasury’s] temptation to fiddle the figures’.
The Government is expected to report next week on how it plans to make £6 billion in savings over 2010-11.
The FSB’s national chairman, John Walker, said: ‘We welcome the news that the Government will set out a clear spending review in the coming weeks ahead of the Budget, as this is an issue of concern to many small business owners. We also welcome the creation of the Office for Budget Responsibility.
‘We urge the Government not to place further taxation burdens on small businesses at a time when the recovery is fragile, and we would like to see measures announced that will promote business growth and encourage employment,’ added Mr Walker.
