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Tax cuts top of the agenda for UK businesses

Mike Randall, CEO of Close Brothers Asset Finance

30% of UK businesses believe a cut in taxes is vital to encourage growth and get the economy back on track.

This is according to research findings from the latest Close Brothers Business Barometer* which has shown that nearly a third of business owners wanted to see a cut in VAT in the last budget announcement.

However, whilst the registration threshold increased marginally from £77,000 to £79,000, the standard VAT rate remained at 20%.

CEO of Close Brothers Asset Finance, Mike Randall said: “UK businesses are seeking policies that will encourage growth and help push the economy forward.

“The outlook continues to look bleak for small firms, but they are resilient. In fact, our research findings show that a fifth of UK firms have plans for growth in the next year.

“However, firms must ensure they have a carefully considered financial strategy in place to facilitate these plans for growth and achieve their full potential. It is important that cash flows to business and that they are aware that there are a range of smart funding solutions they can avail of.

“We are trying to raise awareness of how asset finance can help to facilitate investment for growth.

“We offer a wide range of solutions including hire purchase, leasing and asset refinancing and tailor these products to individual circumstances. It’s a smart option for firms who seek to finance plans for growth in the present climate,” he added.

The survey also revealed that over a quarter of business owners would welcome a cut in income to help boost disposable income and increase capital spending power.

*The Close Brothers Business Barometer is carried out on a quarterly basis. It canvasses the opinion of SME owner managers on a range of issues affecting their business.