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March 2005

BUDGET - NOT ENOUGH BACKING FOR SMALLER FIRMS Says UK200Group

By Colin Howe

Commenting on the Budget, the UK200Group of Accountants and Lawyers specialising in the growing business sector says 'Everybody expected a pre-election Budget and that's exactly what we've got. Any strategic planning about the future of the tax system is clearly on hold till after the General Election. And there is too little of substance for smaller businesses, often rightly seen as a key engine of economic growth.

The one encouraging news item is that 35 quangos dealing with businesses are to be reduced to nine, which should lift some of the burden of excessive regulations and red tape bedevilling smaller firms. But how soon? This is a long overdue step, but where are the signs of urgency?

UK200 Group welcomes the move to create a single point of contact for VAT and Corporation Tax and the prospect of flexible payments options, but how long before both moves are to be implemented?

The promise that 2.5 per cent of public sector research contracts will in future go to small and medium sized firms is encouraging, but why such a small proportion and how long before this takes effect?

At least the pledge to offer aid for deprived areas to boost local enterprise is scheduled over the next five years, but again where is the urgency?

For more information please contact Colin Howe on +44 (0) 1442 269341 or email colin.howe@hhllp.co.uk

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