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Firms flee UK to escape tax

Mounting taxes are leaving many of the UK’s smallest firms with an uphill struggle to survive, leading some to consider relocating outside the UK, the Forum of Private Businesses is warning.

The FPB is cautiously welcoming a commitment made by David Cameron, the leader of the Conservative Party, to cut taxes in order to prevent this exodus.

Speaking at a Confederation of British Industry conference last week, Mr Cameron warned that companies were ‘fleeing our shores looking for a better place to do business’.

Mr Cameron said: “To give them reason to stay - to show Britain is serious about enterprise - we will cut the Corporation Tax rate to 25p and will reverse the increase in small business taxes.”

The Government is already slashing the higher rate of Corporation Tax, which is paid by big businesses, from 30% to 28%. The FPB is calling on Mr Cameron to see through his commitment to do more by pledging similar cuts to the lower rate Corporation Tax paid by small businesses.

Phil Orford, the FPB’s Chief Executive, said: “While Mr Cameron’s proposals on business taxation are welcome news, it is important that he makes good on his statements and addresses the disproportionate tax burden, as failure to do so will drive even more small firms away from the UK. FPB research shows just how exasperated small businesses are with the current Government’s tax system.”

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