Postponement of corporation tax increase welcome but will it be enough?
24 November 2008
Commenting on the measures announced in the Chancellor’s pre-budget statement, John Drummond, Chief Executive of the Scottish Grocers’ Federation (SGF) said,
“SGF welcomes the Chancellor’s move to defer the increase in the small companies rate of corporation tax meaning the 2009 tax rate will be unchanged, the introduction of a Small Business Finance Scheme and the decision to enable HMRC to allow firms facing difficulties to spread the payment of all their business taxes, over a timetable they can afford, for as long as they need. These measures will help to stimulate business and assist small shops in these challenging times.
“Whilst the 2.5% reduction in VAT will improve consumer confidence, it is the “big ticket” items which will benefit from this cut more than the convenience store sector, where the average spend is smaller, and any benefit will be negated by increases in duty on alcohol and tobacco.
“A reduction in the Employer’s National Insurance Contributions, ensuring the cost of employing staff is reduced, would have been welcomed. We are therefore disappointed the Government have committed to increases in National Insurance Contributions from April 2011.”
Scottish Grocers Federation