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Wealth creators and the Comprehensive Spending Review

Before we all get excited at the prospects of lower inheritance tax, let us take a step back and examine what the wealth creators in this country think about the changes that will drmataically alter their business.

It does not make happy reading.

The changes in taper relief, increase in corporation tax, adjustments to definition of family business and the powers for councils to charge extra rates will seriously affect the overall growth of the economy which is more reliant on the 4.5 million small firms struggling to make a living than the equity houses part of this tax change is supposed to impact on.

So much for encouraging an entrepreneurial economy.

Comments

Anonymous said…
it is not good news for business and the development of the sme sector.
The inheritance tax is a sop ifyou look into it its not all it seems.
Why hit the job creators - thats a deadly blow in Wales
October 11, 2007 12:19 pm
Anonymous said…
and we all thought that London doesn't listen to Wales, this is straight our of the stifle the private sector business handbook of Welsh Labour - as VM said god help us here in Wales.
October 11, 2007 1:54 pm
Dr. Christopher Wood said…
"New Labour" under Brown seems to reflect Brown's distaste for anything but more taxes and more government interference in the market place through never ending changes to rules and regulations making life very hard for small businesses. I believe Brown thinks he can out-think the British electorate, but he can't. I believe this will be his undoing.
October 11, 2007 11:38 pm
Mountjoy said…
Gordon Brown has harped on for years about what he is going to do for 'entrepreneurship'. But, as with reducing inheritance Tax, he is not a true believer. And that is disgraceful, as his home country, Scotland (including the Kingdom of Fife), has a proud history of entrepreneurship and industry.

In one fell swoop Brown has dispelled the illusion that he believes in "enterprise for all."
October 12, 2007 2:53 pm
Glyn Davies said…
I was discussing recent policy announcements with a Non Dom last week - and they are concerned. They are not bothered by the flat rate £25,000 levy, but afraid of future changes to bring in a steadily increasing percentage tax. There is a problem calculating and disclosing what their chargeable income should be - as well as paying it. Several of the biggest are already looking at the possibility of moving out of the UK. This will do the UK economy damage.
October 14, 2007 6:00 pm
Professor Dylan Jones-Evans said…
As we have seen, the business community has reacted badly to these proposals which has resulted in the unprecedented step of the IOD, the CBI, FSB and the Chambers actually getting together to work on a joint response.

The lack of consultation over this matter is worrying. It either means that this was rushed through without any real thought as to the consequences or Gordon doesn't really care anymore about what the business sector thinks of him
October 15, 2007 10:09 am
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