Brown loses small business voters
DESPITE the region’s solid manufacturing performance, if an election was called tomorrow, Gordon Brown wouldn’t win the small business vote.
More than nine out of ten respondents to the latest nebusiness poll said they were surviving inspite of Labour’s policies, not because of them. They said Labour had failed the small business sector.
Small businesses claimed the Government has added to the problems of spiraling fuel and raw material costs by hitting them with additional burdens such as extra corporation and capital gains tax.
They also said growth prospects were being hindered by a difficulty in accessing grants and complexity of employment law.
Mike Crawley, co-owner of Northern Horseboxes in Darlington, recently tried - and failed - to access government money to assist with expansion plans. Instead, he is having to invest his “own collateral” in the business.
He said: “The Labour Government hasn’t really supported businesses.
“Employment law, for example, is so complicated that it deters many businesses from taking on staff.
“A Conservative Government would be more understanding of the situation.”
Stephen Gibbens, managing director of Trustlaw Financial Services in Teesdale, said Government concessions including the Chancellor’s “entrepreneur’s relief” on capital gains tax (CGT) had not gone far enough.
After announcing a flat rate of CGT of 18%, the Chancellor bowed to pressure from business lobbying groups to introduce an incentive which reduced the effective rate of tax to 10% on the first £1m of gains.
Mr Gibbens said: “The Government has increased corporation tax for small firms by a further one per cent to 21% for the current year and at the same time it has abolished taper relief on capital gains.
“The Entrepreneur’s Relief applies only to the first £1m of gains so if you were selling a £10m business, you would still have to pay 18% tax on £9m of the gains.”
“SMEs are the backbone of Britain’s economy and more should be done to help them grow.”
Last week, the Federation of Small Businesses chaired by Middlesbrough-based John Wright, launched a survival plan to save independent firms from being driven out of the UK’s high streets.
Clive Davenport, FSB trade and industry chairman, said: “Small businesses and independent retailers are at the heart of our economy and local communities, creating growth and jobs. They must be sufficiently supported.
“In our economic climate, the problems that face small businesses are obvious to all - we are sleepwalking into a disaster.”
