Private firms’ tax concerns
HALF of private business owners surveyed in the North of England do not believe that the UK’s tax regime supports and encourages enterprise, according to new research.
A poll of companies by business advisers PricewaterhouseCoopers revealed a resounding 83% of respondents believe that private businesses need an effective voice with government, though only 37% feel that they are able to make their voice heard and only two in 10 believe that the government actually actions the concerns put to it.
Despite these concerns, almost all are seizing opportunities to support themselves through the recession, with more than 50% in the North confirming that they have updated their respective strategic plans within the last three months.
The survey of 391 private business leaders nationally, including 70 in the North, found that simplicity and stability of the UK’s tax system was top of their list, with 29% calling for a reduction in uncertainty and the rate of change.
Alison Lever, PwC partner and leader of North West entrepreneurs and private companies, said: “Private business is calling for a stable, certain tax environment in which to conduct their business successfully.
“Reducing tax rates would be a challenge, but a reduction in the rate of change and uncertainty should be easier to deliver.
“Private businesses are not looking for a crutch from government – an overwhelming majority are taking active steps to help themselves in managing through the recession. However, they do want a more effective voice.”
The findings revealed a mixed picture in awareness levels of the different tax reliefs available to UK private businesses.
However, those surveyed shared a sense of confidence in their future despite the downturn, with around two thirds (65.7%) agreeing that their business prospects are set to improve rather than decline over the next two years.
Ms Lever added: “While availability of lending has been an issue for many companies, over half do not feel that their business plans have been compromised by a lack of finance.
“Nearly all respondents are however focusing on liquidity to be in a position to take advantage of opportunities coming out of the recession.”
