Corporate Britain expects bad news in the Budget. Businesses are bracing themselves for stealth taxes and a rise in national insurance contributions. They also think a downturn in the economy is to be predicted.
According to a recent survey by accountancy firm Baker Tilley around 78% of companies (with capitalisations of between £5million and £2billion) expect tax increases by stealth, 76% expect corporate tax increases and 63% expect increases in national insurance contributions.
Three quarters of businesses also said that they think the chancellor has failed to foster a spirit of entrepreneurialism in spite of this being a key aim of the SBS. And 90% say they have noticed no benefit from the Governments attempts to reduce the burden of bureaucracy and red tape.
Companies believe that even with cuts in public spending it will not be possible to balance the books and meet expectations on public services so the Government will be looking to businesses to bridge the gap.
Baker Tilley however, can see a ray of hope in the gloom and expects the Government to try to initiate legislation that will support SMEs. This, Baker Tilley predicts, may come in the form of improved capital allowances.
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