Herts business owners urge Brown to ease the tax and red tape burden

20 April 2005

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The FPB is calling on Gordon Brown to make firm pledges to help small to medium sized businesses in Hertfordshire as he visits Hatfield today.

The Forum of Private Business (FPB) says Mr Brown must set out how he is going to relieve the taxation and regulation pain on smaller businesses.

The FPB 's Chief Executive Nick Goulding said: " There is a real battle to be had for business votes. Small and medium sized firms are critical to the UK's economy contributing 50 per cent of the nation's turnover and employing 60 per cent of the private sector workforce. If Mr Brown is to convince bosses he is in tune with businesses we would urge him to address key issues on his visit to Hatfield today including the minimum wage, national insurance contributions and business rates."

FPB member Stuart Summerville, owner of Wright Signs and Coachworks Ltd, Hatfield said he is angry with Mr Brown.

"Gordon Brown has not been a business friendly Chancellor, but it is a sad reflection on the other parties that there is no shining light coming from them. We have massive problems with red tape and employment regulations. The laws coming from Brussels are made far too complicated by the UK Government. Fuel duty, national insurance contributions and business rates are all hurting me. Mr Brown and Labour has had seven years to make things better, how much longer does Labour need? The pensions tax is a scandal, my pension is now worth nothing, but I'm sure Mr Brown's pension will be alright."

FPB is demanding action to help small firms including:

National Minimum wage: Would Mr Brown link increases in National Minimum Wage to the Retail Price Index? The Minimum Wage has increased massively over the last six years, from £3.60 to £5.05 by October 2005. The rise of around 40 per cent during the period far outstrips the rise in average earnings. Will Labour hold back on these rises?

Reducing employers' National Insurance contributions: Would Mr Brown repeal the last one per cent increase in National Insurance contributions? NIC comprise a much higher proportion of costs for small firms than for larger firms and are viewed as a direct tax on jobs and wealth creation.

Fairer Small Business Rates Relief (SBRR): The current system of SBRR fails to deliver relief to many small businesses, especially those occupying valuable or large premises. The current qualification thresholds need to be raised to deliver more relief to more small businesses.

Banning upward-only rent review clauses in commercial leases: Rent reviews should reflect the open market rental value of the property. In 2001, Labour promised to address the issue of upward-only clauses, but recently failed to outlaw them. Will Mr Brown commit to outlawing such leases in the future.

Notes to editors:

Upward-only rent reviews:

Are inflexible and lead to empty properties as rents rise above market values. This hampers regeneration, development and enterprise; it also represents a market failure.

Guarantee an income to landlords regardless of the economic climate. This can put intolerable strain on SMEs as they trim their margins in order to afford rents that are above the market value of the property.

Put SMEs at a competitive disadvantage as they are prevented from occupying prime properties in high streets and business parks because of the impact of the clauses.

For further information on this press release, contact Kieron Hayes on 01565 634709 / email kieron.hayes@fpb.org or Ben Pinnington on 07887 562900 / email ben.pinnington@fpb.org

Herts business owners urge Brown to ease the tax and red tape burden

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