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| CURRENT SECTION :: Money News | UK's most visited IT Contractor Site - 250k unique visitors March 2008 |
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George Osborne has been handed fresh ammunition with which he will shoot down the government’s claims of championing enterprise. The shadow chancellor, who is outlining new Tory policy for business, commissioned the European School of Management to probe Britain’s entrepreneurial culture. Obtained by the Daily Telegraph, the study reportedly found that red tape imposed by the state has restricted firms from growing at the same rate as their European rivals. In short, the study concludes that the government’s attempts to create the best environment in the world for new or established entrepreneurs has failed. Moreover, the growing burden of taxation on companies “will further undermine the attractiveness of the UK as a place to create and grow a business,” the study says. The verdict is timely: not only are the Tories setting out new policy for firms, which is expected to pledge tax cuts, but they want to prevent capital gains tax rising to 18% from April. The party has vowed to oppose the measures on CGT, unveiled in the Pre-Budget Report, by telling journalists it will vote down the Finance Bill. Effectively this meets the needs of all of Britain's major business groups, which call for the measures to be shelved so consultation can form an appropriate solution. Trade unions have joined the condemnation of the 80% tax rise, citing concerns over employee share schemes. But last night a Labour MP, known for supporting Gordon Brown, was reported to have also voiced disapproval. George Mudie, a member of the Treasury Select Committee, wants what business wants – a shelving of the tax rise until an alternative policy can be determined. He told The Times: “I think that there are unintended consequences to the measure that are becoming apparent. There is no real financial reason why we don’t just consult and do it later – put it off and then make a job of it.” And disclosures obtained by The Independent claim the revolt against a higher rate of tax when selling a company has angered some of the UK’s most high-profile entrepreneurs. Three of the five investors who sit on the BBC’s Dragons’ Den reportedly believe it was wrong to scrap the 10% rate of capital gains tax on business assets held for two years. One national newspaper recently claimed it tried to ask Gordon Brown’s Business Council their views on the tax change. “No comment” or ‘unavailable’ was the reported response. Not one member commented or has since commented. At the time of writing, the petition on the Number 10 website to ‘Keep the CGT taper relief as a major incentive to enterprise’ had received over 11,000 signatories. Oct 18, 2007 Email this article Printer friendly page Previous Page
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