Headline Grabbing Cut in Corporation Tax masks hike for SME’s says Empey
Responding to Gordon Brown’s last Budget as Chancellor, Ulster Unionist Party Leader Sir Reg Empey has raised his concerns about the tax hike on small businesses and the lack of new approaches to social and environmental challenges.
Sir Reg said,
“The reduction in corporation tax levels and the basic level of income tax might, at first look, suggest that the Chancellor is now beginning to recognise that the tax burden on the United Kingdom’s families and businesses is too high.
However despite headline grabbing reduction in corporation tax from 30% to 28% for large businesses, the chancellor concealed an increase in the same tax from 19% TO 21% for small business.
As NI has a small business economy I am stunned that the Chancellor has taken us in this direction. This makes our task with the Chancellor an even more herculean task tomorrow at No 11 Downing Street. Absolute unity from the parties involved is essential if we are to succeed tomorrow.
Considering the Northern Ireland economy - like some other parts of the UK - relies heavily on the enterprise of SMEs, this tax hike together with the failure to move away from the flawed R&D tax credit system results in a budget that offers little for Northern Ireland’s businesses.
If the budget fails the economic competitiveness test, it also fails the social justice test. Older people have been offered little. The fact that Help the Aged have described this budget as ‘a missed opportunity’ speaks volumes. There has also been a failure to adequately address child poverty - despite the Government’s commitment to eradicate this scandal by 2020. The plight of children in the most severe poverty has not been addressed by Gordon Brown.
The fact that green taxes have actually fallen during Gordon Brown’s time at the Treasury, and that his budget speech failed to even mention the Stern Report on the economic impact of climate change (despite being commissioned by the Treasury) also raises serious questions about the leadership this Government is showing in addressing environmental challenges.”