Press Room
Business community speaks out on what they would change if they
were Chancellor for the day
Five hundred Finance Directors from the business community were
asked what changes they would introduce if they were Chancellor for
the day as part of research from leading business and financial
advisers Grant Thornton.
The most popular changes (with the percentage support in brackets)
were:
>Introduce tax rebates for employers giving jobs to new and
younger entrants to the workforce (47%)
>Impose a three year cap on corporation tax rates at the current
level (38%)
>Increase the introductory rate of stamp duty land tax to over
£200,000 (38%)
"The following results provide a healthy insight into what the
business community would like to see in the forthcoming Pre-Budget
Report. Most importantly the pressing issue of unemployment, in
particular among the young, needs to be a fundamental focal point
for the Chancellor. He will need to launch ambitious initiatives
and targets if we are to see the scale of unemployment decrease."
says Francesca Lagerberg, head of tax at Grant Thornton.
"The business community would also like to see that the corporation
tax rate does not increase. The last 12 months have seen some
businesses hamstrung by the lack of available credit in the market.
The last thing businesses need to see is an increase in the
corporation tax rates even if this would prove a healthy boost to
the Treasury tax receipts", continues Lagerberg.
"The property market has also seen a considerable decline during
this recession. Confidence here is yet to be reinstated. Any help
for first time buyers will encourage the retail sector and provide
a needed boost to the economy.
"In the run up to the election, the Chancellor has limited means to
raise tax revenue without a considerable voter fall out. However,
it is interesting that of the FDs polled, 34% said they would
consider cuts to public spending if it meant that the public
spending deficit would reduce. Yet a near equal 32% have said
investments should continue to be made in the public services to
build a stronger Britain.
"It is unclear what position the Chancellor will take to
reinvigorate the economy. Yet short term measures will not answer
this 21st century economic turmoil. The Bank of England and the
Treasury will have to work harder and closer than ever to solve
this economic conundrum" concludes Lagerberg.
For further information or a copy of Grant Thornton's tax
manifesto, please contact
Suvra Datta, Grant Thornton Press Office, 0207 728 2375 or via
email on suvra.datta@gtuk.com