The Chancellor’s budget is being welcomed – in part – by the Federation of Small Businesses in East Sussex.
They have welcomed the fact that the Chancellor has listened to the small business-led campaign on business rates. The £435 million of new money is a direct and much-needed response to those facing astronomical hikes in their business rates. This immediate relief is vital in the short-term, and action on more frequent revaluations will also help. But this tax remains out-of-date, so today we call for a cross-party Commission to create a simple, fair tax system for a modern economy.
Martin Searle FSB East Sussex said, “Thank you to all our local business members who sent in their stories for us to use in this national campaign. We will continue to work with Councils to ensure the announced discretionary rate relief fund is targeted fully and fairly to those businesses that need it and also support our members in genuine cases where a rates appeal is necessary.
“Mr Hammond announced that he would take forward FSB’s proposals to help the self-employed in the benefits system. We look forward to working with him on what this may mean for maternity benefits and paternity leave. However, the National Insurance rise to 10% next year and 11% in 2019 should be seen for what it is – a £1 billion tax hike on those who set themselves up in business. This undermines the Government’s own mission for the UK to be the best place to start and grow a business, and it drives up the cost of doing business. Future growth of the UK’s 4.8 million-strong self-employed population is now at risk. Increasing this tax burden, effectively funded by a reduction in corporation tax over the same period, is the wrong way to go.”
“We will be calling out to our local self-employed members to let us know how this tax increase impacts upon them in ‘real money’ terms. It is a deeply unpopular move which directly contradicts the Government’s new Industrial strategy. With the power of small business behind us we will be pushing for a rethink on this measure.”