smallbusiness.co.uk: Helping your business think big

Over the coming weeks tax and spending will become the battleground for the main political parties, as Gordon Brown finally let slip what he called the ‘worst kept secret in politics,’ the date of the election.

In the run up to 6 May, of particular importance for businesses will be the planned increase in National Insurance (NI) contributions, which appears to have moved to the top of the agenda now the Conservatives have promised to reverse the decision.

But it’s hard to know what to believe with claims and counterclaims about fiscal credibility coming in thick and fast (Alistair Darling has said George Osborne’s plans to roll back the increases are ‘unbankable’).

With the debate already moving into the realms of a playground argument, it wouldn’t be surprising to see Darling’s next attack to be putting Osborne in a headlock and insisting that: ‘I’m the best chancellor’.

While there’s no denying that the 1 per cent increase is bad news for small businesses, who certainly stand to lose more from it than the likes of Sir Stuart Rose, Stelios Haji-Ioannou, Justin King and 20 other business leaders who have described it as an ‘additional tax on jobs’, many remain sceptical about all pronouncements on tax so close to an election.

Alber Goldberg, owner of glow in the dark paint company Glomaina, says he is doubtful that either of the main parties has the interests of small businesses at its heart: ‘I have little faith in politicians, I don’t really believe anything they say.’

Christine Hogg, director of Cams Fire and Security, agrees: ‘I do believe that the NI increase ought to be scrapped as it is bad for business, but I don’t have much belief in what politicians say regardless of their party.’

As the election campaign heats up you can be sure the political parties will step up their attempts to woo business owners, but it is clear they still have some work to do to persuade them they are really on their side.

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