Member Article

Businesses concerned about Budget implications

Almost three quarters of small firms are worried about the impact of the forthcoming Budget announcement, new research has found. Alliance & Leicester, who conducted the research, said small businesses already have an indication of what lies ahead, after proposed changes to tax were made in the March 2007 Budget, and the Pre-Budget report in October.

Changes are likely to include increases in corporation tax rates, new legislation to prevent income shifting, the scrapping of taper relief on Capital Gains tax, and increases in fuel duty.

Just one in ten small businesses say they ‘thoroughly’ understand the implications the proposed changes will have on their business. Of those who said they did not understand the implications, nearly two thirds said they ‘feel negative’ about the changes. Over half added that increased fuel prices are their biggest area of concern, with over a third anxious about red tape, and almost a quarter worried about the abolition of taper relief.

Steve Jennings, Alliance & Leicester’s director of business banking, said: “With good planning, businesses can prepare for these financial threats. Reviewing outgoings is just one area where businesses can save considerable amounts of money. “Look at regular costs such as utilities and bank charges and ensure you shop around for the most competitive deals. By researching the deals available and switching to a more competitive offer, businesses can save thousands of pounds each year.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .