VAT cut a waste of time, say SMEs

Most small and medium enterprises did not agree with the chancellor Alistair
Darling’s VAT cut, a survey conducted by Access Accounting has found.

In fact 82% thought the 2.5 per cent cut – which has been in force for nearly
three months – was a bad idea.

Twenty-seven per cent said they thought it was a good start, but that the
chancellor needed to do more. Nearly all businesses surveyed said the rate
change would have minimal impact.

Respondents said the chancellor could do more by forcing banks to pass on the
benefit of interest rate cuts to business loan and overdraft customers.

Nineteen per cent called for a decrease in the corporations tax while 16 per
cent wanted special allowances for small business.

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