The Chancellor's Pre-Budget Report 2006 was a bit of a washout for small businesses. There was no acknowledgement of a call to reduce Corporation Tax. We find out what chief executives would like to see Gordon Brown implement or repeal for business in his next (and final) Budget.
Susanna Freedman managing director of design consultancy Tsuko:
"Creative thinking must be actively encouraged; applying it across all business processes gives companies their edge and distinction. Appropriate R&D and design tax credits must be made more readily available to all sizes of business and linked to a firm policy of support for creativity."
Bernard Howard managing director of recruitment site totallyfinancial.com:
"Perhaps I should say lower taxes and assistance for training. But I think two of the big issues for 2007 are climate change and the ageing population. I hope that the Budget addresses these issues. A government minister once remarked that climate change requires 'cumulative, consistent radicalism'. But I suspect that like most governments, this one will lack the political courage to match words with deeds."
Justin Patten solicitor and founder of technology legal consultancy Human Law:
"I would like to see a tax break that encourages firms to have more knowledge and training of technology issues. Business people aged over 35 are still too ignorant of the way that technology is changing business and society."
Hugh Paterson CEO of technology firm Biscit:
"I urge Gordon Brown to provide students (those who will help build our economy) and senior citizens with subsidies for phone and broadband services. They exist for education, travel and heating-they should also exist for calling and surfing."
Peter Waine co-founder of non-executive and executive search firm Hanson Green:
"I'd like the government to avoid the penalisation of successful UK directors, who create wealth and drive the economy, by raising income tax levels. We need to provide a tax structure that will not encourage mobile, internationally minded figures to leave the UK and take their expertise, knowledge and tax revenues with them."
Alyson Pellowe managing consultant of HR firm People Vision:
"The next Budget must offer more effective support for the professional development of employees-the talent of the future. For example, it could provide funding for skills development that will be key to the success of the Olympics, such as surveyors and project managers. Or to allow tax breaks on the cost of professional memberships organisations such as the Chartered Institute of Personnel and Development or the Association of Certified Chartered Accountants."
Jean Stephen CEO of accounting and consultancy firm RSM International:
"The success of the AIM market this year shows just how buoyant the market is for SMEs and mid-corporate businesses. I'd be heartened by any new measures that fuel business efficiency and growth for these companies, and would welcome any moves that deliver a positive impact on cross border business, both to and from the UK."
Paul Fegan director of telecoms information management firm Mala Communications Limited:
"The tax culture means there is no incentive to succeed. We're taxed to use the roads, clobbered if we use public transport instead. If you save, you are taxed, when you retire you are taxed and you're even taxed to die. I am all for being a responsible citizen and doing my bit for the economy and environment, but give me incentives for being caring and helpful.
The Chancellor encouraged the sole-trader to incorporate by creating a nil-rate band of corporation tax for the first £10,000 of corporate profits. Had the status quo remained, far fewer people would now be seeking ways to extract funds from their companies in a tax-efficient manner, particularly now that the nil-rate band has been removed."
Chris Benson founder of sign production firm Chris Benson Signs:
"Most of Gordon Brown's proposals in the 06 Green Budget were fairly neutral, but there was an indication that the tax regime afforded by having limited company status will possibly become more onerous.
The proposed green measures are welcome, but insufficient. The increase in air passenger duty should be increased and used to invest in new technology and environmentally friendly aircraft.
Householders and businesses should be encouraged to embrace renewable energy technology by selling their surplus back to the national grid (as in Germany and other EU countries). Energy companies should also be set targets to increase the amount of renewable power plants."
Sue Stoneman managing director of employee engagement agency NKD Group:
"The Chancellor could help by improving or extending tax incentives for offering shares to employees of small, privately owned companies; reducing the burden of employers' National Insurance; and reintroducing a tax-free band in regards to Corporation Tax. I'd also like to see big changes to inheritance tax."
