CHANCELLOR HITS SMALL BUSINESS WITH CORPORATION TAX

SMALL BUSINESS leaders have slammed the Chancellor of the Exchequer for increasing corporation tax on small businesses while cutting it for larger firms. The Federation of Small Businesses, the UK's largest business organisation with 205,000 members, said that the move was grossly unfair. Derek Williamson, chairman of the north Surrey branch of the FSB, said: "Corporation tax was cut for large firms but increased for smaller ones. Small businesses employ 58 per cent of the private sector workforce, over 12million people, and the increase in their tax rate fails to acknowledge their contribution.

A cut in income tax is welcome but does not fully offset the dismay felt by small firms despite the other allowances offered."

He said road tax on larger engine vehicles and company cars will also hit small businesses but proposals to reduce the business rate relief on empty commercial property were welcome.

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