‘Small businesses see the increase in national insurance as an anti-job, anti-small business, anti-start up manifesto breach ‘said Mike Cherry (Chairman of the Federation of Small Businesses) when speaking to the Economics Editor of The Times, Philip Aldrick recently.
Many small companies are already carrying huge amounts of debt and have struggled to maintain their staff during the pandemic.
These small company owners are suffering a triple whammy with the increase in national insurance, increase in the income tax rate for dividends and a huge 6% increase in corporation tax coming in 2023.
According to Kitty Ussher at the Institute of Directors, this will ‘add an extra burden to business’
While the Conservatives have always stood for low taxes, Rishi Sunak seems to be making a transition from Santa to Scrooge just in time for Christmas. It does seem that he is targeting his tax increases at a ‘soft target’ and many businesses feel like they are being ‘kicked when they are down’.
In the past, these small business owners supported the government yet now just like Scrooge, Rishi might mind that his previous adoration has turned to bitter resentment. It might just be a bleak Christmas for many of us.
Do you think the tax increases were justified?
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