12-10-2007
Business leaders speak out following pre-Budget report
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A number of business leaders have voiced their reactions to the measures announced during this week's pre-Budget report.
Speaking to the Financial Times, four business representatives have expressed their likes and dislikes from the package of measures announced by Alistair Darling, with the announcement by Mr Darling over plans to reduce bureaucracy one of the hottest topics discussed.
Indeed, though Simone Schehtman, one of the founders of Teamworks Karting, simply sought to express the need for a reduction in the levels of bureaucracy facing businesses, the chief executive of The Original Factory Shop George Foster chose instead to voice scepticism, a sentiment shared by Jonathan Neame, the chief of Shepherd Neame, a pub-operator based in Kent.
However, Graham Lees, the executive director of industrial group Clyde Blowers, remained upbeat about the government's plans to streamline red tape, confirming that "cutting red tape is … good because we spend a lot of time and energy on those things".
"I would always treat with great scepticism anyone in government who says that they are going to reduce red tape," noted Mr Foster.
"You end up having to employ people to get over the issues of new laws, such as changes to the planning process. As a nation we seem to love bringing in new laws," he added.
Furthermore, between a number of the business leaders, concern was expressed over government plans to allow local authorities to set a business rate supplement, with Ms Schehtman and Mr Foster both expressing their misgivings. Indeed, while Ms Schehtman remained cautious about the effects of increasing the tax burden on businesses, Mr Foster expressed doubt in the ability of local authorities to make sound decisions over business tax levels.
Mr Foster also expressed concern over exactly how the revenue would be spent.
"[In the report,] there seemed to be a lot of political point scoring, but what we need is something that encourages economic stability," observed Ms Schehtman.
In related news, there are growing concerns that measures announced in the pre-Budget report will lead to an increase in the tax burden of those participating in employer save-as-you-earn (SAYE) schemes.
Reports suggest that the modifications to the capital gains tax regime and the introduction of a single rate of tax set at 18 per cent will generate negative consequences for employees who exercise their right to participate in their employer's share-save initiative.
BT and Marks and Spencer are believed to be among the Britain-based companies that have expressed concern, according to the Financial Times.
Under the terms of a SAYE scheme, employees are permitted to set aside between £5 and £250 every month, although the terms and conditions of each scheme may differ between employers.
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