Budget 2012 case study: Tax cut for wealthy is daft says businessman

AS CHAIRMAN and managing director of Peoples, a car dealership with outlets across Scotland and in Liverpool, Brian Gilda might be expected to support the axing of the 50p tax rate.

However, Mr Gilda, who founded the company 29 years ago, said: “It’s daft. I can’t see any reason in this economic climate for the Chancellor to reduce that tax now. The only benefit is to millionaires.”

He is happy to see the income tax personal allowance threshold raised, but does not think the top tax rate should have been cut until the threshold hit £10,000.

“The 1 per cent at the top should just have to live with 50p for this period of time,” he said. “They’ve got the resources to do it. I don’t support it, I don’t think it’s necessary, I don’t even think it’s based on solid information.”

He said he saw it as “the responsibility of every government” to legislate against tax avoidance, and did not believe the Chancellor was specific enough on the subject.

“We are worse off as a country because of those individuals and companies who are flagrantly abusing the tax system,” he said.

“If he’s serious about the general anti-tax avoidance rule, he has to spell it out, or it’s meaningless.”

However, one thing Mr Gilda is happy to see is the further cut to corporation tax.

“The tax ultimately coming down to 20 per cent is good news for business,” he said. “It could be used to invest in new business, invest in people, and to help to grow the economy.

“And it’s good news for business owners, who know that they are better at running their own businesses. Similarly, the possibility of a stimulus for young enterprise is a positive move.”

ABIGAIL LEWIS