- Raise in the Small Companies’ Corporation Tax from 20% to 21%, bringing the Treasury an extra £550 million
It is clear that there are challenging times ahead for the UK economy which makes the decision to raise taxes even more bewildering. The British Chambers of Commerce is predicting that average UK GDP growth will plunge from 3.1% in 2007 to 1.7% in 2008 but could recede further if the domestic policy response to the challenges ahead is inadequate.
David Frost, Director General of the British Chambers of Commerce, said:
“The Chancellor has an opportunity in two weeks time to hold back from adding £3.4 billion worth of additional taxes on UK business. The economy is set to slow down considerably this year and the last thing business needs is to be squeezed further by the Government.
“In recent months we have seen a growing chasm between the business community and the Government. A range of poorly consulted and badly thought through policies have sent an adverse message to the business community, which threatens to erode enterprise and the spirit of entrepreneurialism in the UK. This Budget gives the Government the chance to regain the initiative and show that it still can lay claim to being on the side of entrepreneurs.”