US economic policy appeal to UK manufacturers?

UK companies pay more than double the taxes when compared with USA; the UK government should slash taxes that hold back business enterprise, says The Forum of Private Business,

With British companies paying more than twice as much in taxes than their counterparts in US, Gordon Brown should take a leaf out of President Bush's economic policy and slash taxes that hold back business enterprise.

That is the call from a UK national business pressure group, The Forum of Private Business, which champions the cause for more than 25,000 private businesses across the UK.

Their members say heavy taxes is their number one cause for complaint and are now intolerable.

"Lifting the heavy hand of taxation imposed on business would unleash entrepreneurial spirit and encourage private businesses to create new wealth and jobs," said Rex Garratt of FPB.

"British companies should not be treated purely as a cash cow by the Government." According to a latest report from the World Bank, British companies pay more than twice as much in direct and indirect taxes than firms in US.

British businesses pay 52.9% of their gross profits in one form of tax or another.

By comparison the tax burden on companies in the US was only 21.5%, in Japan 34.6% and in France 42.8%.

"President Bush has come under attack for his plans to cut taxes in America by critics who say the poor and deprived will suffer, " said Garratt.

"But we believe our Chancellor could take a leaf out of Bush's policy and cut some of the taxes that hold back economic growth here in Britain," he added.

Taxes such as PAYE, National Insurance contributions, business rates, corporate tax, VAT, capital gains tax, dividend tax and fuel duty are among levies the FPB is calling on the Chancellor to reduce in order to give UK businesses the chance to grow and boost the economy.

"Although small firms can now apply for business rate reductions, the vast majority still pay a massive amount of business rates via their local council, and get absolutely nothing in return," say the FPB.

Businesses are charged extra if they want their refuse collected, or if they want to dispose of waste or recycle.

They are also subjected to a whole range of additional charges for inspections, licences to trade and certifications.

The World Bank highlighted the complexity of the tax system in Britain, where there are to 22 different forms of taxation on British companies.

The bank report suggested the introduction of 'flat taxes' to simplify the costly bureaucratic burden imposed on firms.

The bank report also relegated the UK from 7th to 9th place in the world for ease of doing business.

* About the FPB - The Forum of Private Business (FPB) was formed in 1977 and is a pressure group fighting on behalf of private businesses.

The FPB represents approximately 25,000 UK-based businesses employing in excess of 600,000 people, and is a powerful lobbying voice in both the UK and the European Union.

The FPB, as the only full UK member of UEAPME - the organisation that represents small and medium-sized enterprises (SMEs) in Europe - is the most prominent advocate of UK SMEs in Brussels and has a track record of positively affecting legislation prior to its introduction in the UK.

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