Money News
Just 7% of small business owners believe that Budget 2008 will bring good news for Britain's entrepreneurs, according to new research from Bank of Scotland Business Banking. The research paints a gloomy picture when it comes to hopes for a Budget that will promote enterprise in Britain. Nearly half (45%) of Britain's entrepreneurs think that Budget 2008 will have a negative effect on small business, while approximately the same number (42%) believe it won't make any difference.
The pessimism demonstrated by small business owners towards this year's Budget underlies a belief by the two thirds who feel that the Government is specifically targeting small business as a means of raising tax revenue. Meanwhile, 68% believe the tax regime is unfair.
In Budget 2007, Gordon Brown announced plans to increase the small companies' tax rate from 19% to 20% from 1 April 2007, with further increases to 21% in 2008 and to 22% in 2009. Findings from the Bank of Scotland research show that 35% of small businesses are still unaware of these changes to the tax regime. In addition, only 28% are both aware of the increases and have made allowances for them in their budgeting.
The uneasy relationship between small business and the Government betrays a lack of belief from entrepreneurs that the Government understands what makes them tick. Indeed, only 13% believe the Government is aware of the needs of small business and is working hard to help them thrive. Some 93%, on the other hand, believe that the Government should be doing more to support small businesses.
Ivan Matviak, Head of Bank of Scotland Business Banking said, "Britain's entrepreneurs clearly have little faith in the Government's ability to deliver a Budget that will support and promote enterprise. Having been on the receiving end of last year's incremental tax increases, it's not surprising to see that small businesses feel particularly hard done by when it comes to the tax regime.
"If small businesses are to remain the lifeblood of a growing economy, then it's up to the Government to deliver some good news and provide a boost to Britain's small business owners."
10 March 2008 © Moneyextra.com
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