George Osborne is giving a speech to the Chartered Institute for Personnel and Development and the British Chambers of Commerce today, about simplifying the administration of income tax, national insurance and VAT:
“In his last Budget, Gordon Brown increased the tax rate on small businesses from 19% to 22%. This was the third increase in three years. The Chancellor also introduced yet another set of complex tax reliefs that most start-up companies won’t actually be eligible for. If his past tax reliefs are anything to go by, even the companies that could claim the relief won’t be able to afford the tax advisers they need to do so.
As the Director of the British Chambers of Commerce has said, these measures will hit those looking to grow their business. The Conservative Party will continue to oppose the Chancellor’s latest tax rise for small businesses. We are fighting this measure every step of the way in Parliament. Should we fail to defeat Labour on this, we will look very carefully at how we can reverse the increase in the tax rate."
Update: Download full speech here.