Businesses attack Darling’s tax changes

Source: Exec Digital UK

Date :15/10/2007 08:44:51

Britain's leading business groups have united to attack Chancellor Alistair Darling's proposal to stop capital gains tax relief.

Darling’s plan to replace different rates of relief for different kinds of investment with an 18 percent flat-rate tax was revealed in the pre-Budget report.

Anxiety

However, the CBI, Institute of Directors, British Chambers of Commerce and Federation of Small Businesses have all said in an open letter that they are "deeply concerned" about the move and are looking to meet with Mr. Darling to state their case.

The impact of the decision will be felt throughout the economy," their letter said.

"The net effect will be to set back the growth of the economy over coming years by discouraging longer-term investment and risk-taking.

"Combined with this week's decision on capital gains tax, our members feel the government's 10-year effort to create a pro-enterprise agenda has been put into reverse gear.

Postpone

"On behalf of our combined memberships, we urge you to pause, suspend your decision and enter into urgent and detailed discussion with the key business organisations to resolve this situation.

“We will work with you towards a better solution that meets the Government's objectives, however we do need to understand what those objectives are."

October 15, 2007

Related Links

CBI

Institute of Directors

British Chambers of Commerce

Federation of Small Businesses