How to make a ‘smorgasbord’ Budget more appetising for business |
If the Chancellor is incapable of making the bold tax reforms businesses need at the upcoming Budget, there are some smaller measures that would be beneficial, says Louise Hellem
At the CBI we are urging the Chancellor to make bold moves on Wednesday and not to subject the economy to death by a thousand taxes. While nothing is certain, all signals point to a Budget defined by the decisions it takes on tax and it looks likely the Chancellor will shy away from more fundamental reforms – opting instead for a “smorgasbord” of smaller measures. Although what businesses really want is a stable, simple tax system to support their investments, even in this less optimal scenario there are still some good options she could serve up to support the growth the country needs and address the cost of living.
Take VAT on donated goods: at the moment, if a business does the right thing and gives its spare stock to a charity to share with those who need it, they pay VAT. If they send it to landfill they don’t. The CBI has been working with retailers, charities and key Labour figures including Gordon Brown to fix that absurdity –........