One rarely expects good news when governments make financial announcements but the Chancellors plans for Capital Gains Tax amount to little more than a kick in the teeth. It seems that for a government that has been pleased to describe itself as being “business friendly” this government has dealt yet another blow to add to the many since it came to power in 1997.
Investors in business are key to a successful economy whether they be investing in their own or one owned by someone else. Without people who are prepared to take on risk new businesses will not be started and many established businesses will not grow. We should applaud those people who take risk and government should work to provide incentives.
While it was adding to the business load through a plethora of legislation this government did one good thing in introducing taper relief, as a result they made a significant contribution toward maintaining high levels of investment. Removing it is an act of sheer folly and some will see the decision as arising from the politics of envy.
What does this say about the so called “government of all the talents”, where are the myriad of the great and good of the business world who where recruited by the Prime Minister to advise and deliver a business view. Their silence on the subject has been deafening.
With risk comes the opportunity to make great gains, equally it attracts the possibility of great losses. Individuals who are willing to take on risk should be encouraged to do so I very much hope that the Chancellor will review this insidious decision and withdraw it.