BDO Transitions: Business voices regulation fears

YORKSHIRE businesses have rated the Coalition Government’s regulatory powers – and the findings indicate increasing dissatisfaction, according to a recent survey by accountants and business advisors BDO.

The survey was conducted to gauge the findings of their new study, Transition to a New Regulatory Environment. The ’60 second survey’ with Yorkshire businesses this year, found that more than half of the region’s businesses think the coalition government has not achieved the right balance between intervention and a free market.

BDO’s report illustrates a Government that is by nature non-interventionist, seeing competitive markets as a factor that reduces the need for formal regulation. Its key priority is economic growth and it believes less, but more effective regulation should be used as a means to protect and foster that growth.

However, 50% of participating Yorkshire business felt that this balance had not been achieved, with only 30% in favour of Government regulation. Specifically, the hike in VAT is seen to be a hindrance to boosting the UK’s economy.

The latest report looks at how the credit crunch shook the foundations of the relationships between government, business and individuals in the field of taxation policy. The final outcome of complex and often conflicting aspects remains unknown but aftershock themes can already be detected.

  • Most governments in the developed would recognise the need to demonstrate to financial markets that they are capable of eliminating fiscal deficits within an acceptable timeframe.
  • The pendulum has swung. There is no longer general public acceptance of low profile but aggressively packaged artificial tax schemes.
  • The UK Government has stated its commitment to simplifying taxation and reducing tax rates.
  • Providing an attractive location for increasingly mobile businesses, whilst continuing to collect sufficient taxation from the business sector, appears to be a priority for the UK Government’s fiscal policies.

Bdo pie chartAndu Mahon, government partner at BDO Leeds, said: “UK taxation needs to be carefully managed not to discourage the commercial aspirations and appetite of UK plc, its consumers and foreign investors.

“Economic recovery must be ensured so that the nation successfully eradicates its substantial fiscal deficit.”

Over the course of this week, TheBusinessDesk.com will be taking an in-depth look at the latest Transitions report and the challenges and opportunities for businesses from the trends it identifies.

The features will be available to read all week in our supplements channel and our readers can also download the report in full here.

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