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Firms oppose business rates hike: study

09 December 2008
Categories: News
Companies want vote in local elections

More than half of firms are opposed to the new local levy on businesses, claims UHY Hacker Young.

A new study by the company found that 51% of firms object to the Government's plan to give local authorities the power to raise an extra 2p from every £1 on the national business rates.

The extra money raised would fund projects that promote economic development.

The survey also learned that 62% of businesses are less trust of local government than central Government when it comes to the subject of taxes — and 74% of firms believe they should have a vote in local elections.

UHY Hacker Young tax partner Roy Maugham said the potential rise in business rates is 'just another way of sneaking stealth taxes in through the back door'.

He added: 'Companies already pay for infrastructure projects through corporation tax, so they will wonder why they are being forced to pay yet another tax.

'Businesses are paying for local government spending, but they have no say over how their money gets spent [and they] feel that local authorities are just not accountable enough.

'I don't know whether it is realistic to expect businesses to get their own vote, but these [survey] results do suggest that local authorities are doing a bad job of persuading businesses that they [are helpful],' said Mr Maugham.

Categories: News
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