smallbusiness.co.uk: Helping your business think big

Slashing VAT, increasing National Insurance, and deferring corporation tax hikes has left the nation's owner-manager's decidedly underwhelmed. Here Smallbusiness.co.uk gets their reaction to the pre-budget report:

Stephen Peters, owner of bike shop Hampton Court Cycles

For small businesses running thousands of stock lines, it’s not going to be easy to change the prices in line with the reduction in VAT. For such a small amount, I just don’t think it’s worth it.

Retailers are, in many ways, the front door to the economy; the reduction in VAT is not going to make the slightest bit of difference to consumer spending.  

I do think the extension in paying back taxes is fair, but the increase in National Insurance contributions isn’t.

We should just get on with the recession. To be in debt for five to six years is too difficult to bear. I think the government has underestimated the scale of the problem.

It's the middle classes – who try to create things –  that are getting clobbered by the government.
 
They may have fixed the roof, but the walls are coming down.

David White, founder of search engine optimisation site Weboptimiser

The relaxation of payment times is helpful. But basically they are giving with one hand and taking away with the other.

The reduction in VAT equals a loss in cash flow for us, as we are charging less, so there is less money going through the tills.

This might be good for consumers but not necessarily good for us. The whole idea of encouraging the consumer to spend by saving £2.50 [when spending £100] in VAT is ludicrous.

National Insurance increases will put pressure on employers to hire people on salaries less than £20,000, which will have a negative impact on individuals. It will be more expensive for us as the majority of our staff are paid over £20,000. 

Overall, good direction but more could definitely be done.

Matt Hardman, co-owner of bacon slicing operation company The Bacon Factory

I’m not overwhelmed by it.

Cutting VAT won't affect us as we claim most of it back anyway.

A small cut in corporation tax would have made all the difference, as over the years it has been consistently increased.

Deferring it is fine, but it will still mean we’ll have to swallow the pill in two to three years' time.

It’s concerning that we are going to be in so much debt. That is bound to have an effect on general tax levels and businesses may have to bare the burden of this.

I don’t think this government has done much to help small business, to be honest.
 
 

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