UK businesses call for tax cuts

This is according to research findings from the latest Close Brothers Business Barometer which has shown that 30 per cent of SME owner managers 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 per cent.

CEO of Close Brothers Asset Finance, Mike Randall said: “Business owners are looking for measures that will stimulate growth and drive the economy forward.

“Trading conditions remain very tough for small firms, but they are resilient. In fact, our barometer shows that a fifth of SMEs in the UK have plans for expansion in the next 12 months.

“However, to achieve their full potential, firms must ensure they have a carefully considered financial strategy in place to facilitate these plans for growth. It is more important than ever that credit flows to businesses and that they understand that there are a number of smart funding options they can utilise.

“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 suit each individual business. It’s an extremely viable option for firms who seek to finance expansion in the current climate,” he added.

The survey also revealed that 26 per cent of business owners are in favour of cutting income tax to help boost disposable income and increase capital spending power.