Businesses face tax increases
Businesses of all sizes may soon have to cough up an additional five percent tax on top of the national business rate, according to The Institute of Directors today.
The news came as the IoD attacked government proposals which would allow local authorities to levy additional business rates.
In its reply to the government’s Green Paper, released last month, called ‘Modernising Local Government Finance’, IoD deputy head of the Policy Unit, Richard Baron, called on the government not to hit businesses which he said already faced ‘a heavy tax burden’.
Baron added: ‘The government is wedded to the idea of increasing local authorities’ financial autonomy at the expense of business and taxpayers generally. That policy will backfire when businesses close and local economies suffer’.
The IoD also expressed concern over another suggestion in the Paper which would change the mechanism for computing central government grants to local authorities. It said the change would almost certainly result in extra funds for the authorities and increase the burden on taxpayers’.