Despite some encouraging news the Budget has failed to restore relationship between the government a
13/03/2008
The Budget has failed to restore the relationship between the Government and the business community, according to the Chamber.
Said Chamber Chief Executive Richard Lacy:
'This Budget will be seen as one that saw a number of tax increases which failed to help businesses overcome the difficult conditions they currently face rather than one that restored the relationship between the Government and the business community.'
'The pre-Budget Report last October brought in a series of changes that complicated the tax system, increased taxes and made the UK a less attractive place to come and do business. Unfortunately, the Chancellor has not repealed the bulk of these measures and the business community will still feel that the Government has used them as an easy target for the Treasury.'
However the Chamber welcomed initiatives such as increasing the funds available via the Small Firms Loan Guarantee scheme by 60m for the coming financial year and plans to impose a limit on the amount of regulation that can be imposed by Whitehall departments. The Chamber was also encouraged by the Government's goal to ensure that SMEs win 30% of all public sector contracts over the next five years and the announcement of a capital fund of 12.5m to encourage more female entrepreneurs.
Said Richard Lacy:
'We very much welcome measures that help to ease the creation of an entrepreneurial culture. Small businesses are the backbone of our national and local economies, creating jobs and wealth. Helping them to start up and simplifying the regulatory regime in which they operate is absolutely vital to their future success.'
