FSB’s Brutal Budget Assessment

A coruscating takedown of the Budget from the Federation of Small Businesses:

“The National Insurance rise to 10% next year and 11% in 2019 should be seen for what it is – a £1 billion tax hike on those who set themselves up in business. This undermines the Government’s own mission for the UK to be the best place to start and grow a business, and it drives up the cost of doing business. Future growth of the UK’s 4.8 million-strong self-employed population is now at risk. Increasing this tax burden, effectively funded by a reduction in corporation tax over the same period, is the wrong way to go…

The genuinely self-employed are fundamentally different to employees – they are the risk takers that spearhead growth and productivity in our economy. They need help and support from Government given the spiralling costs of doing business, not additional tax burdens. This measure is a tax grab on middle income self-employed people, who are just about managing. Class 4 National Insurance Contributions (NICs) will apply from about £8,000 to £45,000 in profits. Millions of self-employed will now face this tax hike, including plumbers, hairdressers, designers, musicians and many others in all our local communities…

FSB is concerned about the drop in tax-free dividend allowance from £5000 to £2000 starting in April 2018. In the wake of changes to dividend taxation last year, this is a further disincentive for businesses to invest and grow. Many of our members, including those on modest incomes, will now see a significant rise in their tax liabilities.”

The Tories hitting entrepreneurs, their own voters…




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Quote of the Day

Dominic Raab wrote in his letter of resignation…

“This is, at its heart, a matter of public trust,” he told the PM, concluding: “I cannot reconcile the terms of the proposed deal with the promises we made to the country in our manifesto at the last election… I believe that the regulatory regime proposed for Northern Ireland presents a very real threat to the integrity of the United Kingdom. I cannot support an indefinite backstop arrangement, where the EU holds a veto over our ability to exit…”

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