Budget 'a concern' for seven out of ten businesses
Feb 28 2008
Some 70 per cent of small to medium-sized enterprises (SMEs) are worried about what Alistair Darling's first Budget will mean for them, according to a survey.
The pre- Budget statement made in October last year forecast increased corporation tax, changes to capital gains tax, legislation against income-splitting and rises in fuel duty.
Research by Alliance and Leicester shows only 11 per cent of businesses fully understand the implications of the new proposals for their company.
Despite not understanding the changes, 63 per cent of those who do not know the repercussions of the new rules were negative about them.
More than half (54 per cent) say their biggest concern was increased fuel costs.
The Federation of Small Businesses recently complained that even small increases in fuel duty can raise firms' costs by thousands of pounds a month.
Steve Jennings, director of business banking at Alliance & Leicester, recommends businesses make sure they understand and prepare for the changes that will affect them.
'Look at regular costs such as utilities and bank charges and ensure you shop around for the most competitive deals,' he advises.
A litre of petrol now costs an average of 104.8p, up from 86.3p a year ago, according to the Telegraph. British Gas has also said its energy prices will grow by 15 per cent this year.