FPB Accuses Chancellor of Failing Small Businesses

The Forum of Private Business (FPB) has accused the Chancellor of the Exchequer of failing to address the issues of smaller businesses in his first Pre-Budget Report. Alistair Darling delivered his speech to the Commons (9 October 2007) but omitted any reduction in the tax burden for those companies that most need it. The FPB’s Campaigns Manager Matt Hardman highlighted the prospect of more taxes to come.

In his report, Mr Darling handed big business a tax break by pledging to cut the higher rate of corporation tax by 2p to 28p in the pound – the lowest in the G7. However, the rate for smaller businesses remains at the level set by his predecessor, Gordon Brown, earlier this year, in his final budget as Chancellor, raised it from 19 to 22 per cent.