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SMEs 'hurt by UK tax burden'

Published On 19 March 2007 at 10:34:57

UK businesses, including many small and medium-sized enterprises (SMEs), risk losing their competitive edge unless the chancellor acts to reduce tax burdens, a leading business organisation has warned.

Ahead of this week's Budget, the Engineering Employers Federation (EEF) has revealed that UK businesses will pay £11.9 billion more in taxation in the year 2008/9 when compared to 1996/7.

This increased tax is hurting the competitiveness of British SMEs, the organisation warns.

"There is a danger of the UK losing its attractiveness as a location for manufacturing at a time when other factors are loosening ties with the UK," warned EEF director general, Martin Temple.

"At the same time, there are a growing number of business-friendly locations around the world and reasons for remaining in the UK are therefore becoming less compelling."

Because of this, the organisation called on the chancellor "to reassure companies that he understands the severe pressure they are under by signalling a clear intention that steps will be taken to ease the burden bearing down on them".

Gordon Brown is set to reveal his Budget on Wednesday.

 

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