UK businesses call on parties to rule out tax increases

Published on Monday 25 April 2005 11:52

THE main political parties were today urged to rule out any more increases in business taxes in the next Parliament.

The call came from the British Chambers of Commerce as it prepared to stage its annual conference in London.

BCC president Bill Midgley said the organisation did not want any rise during the next parliament - whoever wins the General Election.

A survey of 550 BCC members showed that 90 per cent were worried that business taxes were set to increase.

Speaking ahead of today’s conference, Mr Midgley said: "Gordon Brown and Michael Howard should not expect an easy ride as they face businesses at the conference.

"Taxation is one of the biggest issues of concern. The continuing debate over whether taxes will have to rise under a future government is a major worry and employers now need a firm commitment that business taxes will not go up."

The BCC also called for a reduction in red tape, which it said had cost UK firms an extra 39 billion since 1998.

Mr Midgley added: "In recent years, businesses have had to contend with rising National Insurance contributions, which have simply increased the cost of employing people.

"On top of these costs and other higher indirect taxes, the continued speculation about the future of business rates only serves to increase business fears.

"A future government should strongly resist any call to return the setting of business rates to local authority control.

"From the rising burden of regulation, skill shortages to congestion on our roads and rising pension costs, businesses will be seeking answers today."