""SMEs need consistency and predictability to plan for growth. Yet we've seen a pattern of reactionary tax changes, which doesn't focus on the long-term strategy. Each new announcement, whether it's a tweak to National Insurance or a shift in inheritance tax, adds another layer of uncertainty. Businesses are focusing on managing costs rather than investing or expanding. The frequent changes to rates, reliefs and business incentives are forcing many firms to adopt a defensive stance.""
""Rachel Reeves' speech on Tuesday, appeared to pre-empt further tax rises in the Autumn Budget. Increases in headline taxes such as Corporation Tax or VAT, and smaller rises in income tax, National Insurance and business rates, combined with new compliance requirements will continue to put pressure on SME's margins." Ball argues that this fragmented approach to taxation fails to support businesses through a period of economic recovery and discourages entrepreneurship."
Constant changes to tax rates and policies such as National Insurance, the minimum wage and inheritance tax are creating uncertainty for SMEs. Repeated adjustments are forcing businesses to focus on cost management rather than investment or expansion. Expected further tax rises and added compliance requirements will put continued pressure on SME margins. Many firms are adopting defensive strategies, delaying investment and growth decisions. The fragmented, short-term approach to taxation undermines long-term economic stability, discourages entrepreneurship and reduces the ability of small and medium-sized enterprises to plan for recovery and growth.
Read at London Business News | Londonlovesbusiness.com
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