As widely expected, the Government this week announced a £12bn per annum tax rise, including an increase in NI, which breaks its Manifesto pledge. A tax on share dividends has also been announced. We asked small business owners around the country for their views.
12 responses from the Newspage community
"Credit to the government for tackling issues such as social care, previously in the too-hard-to-do pile. However, I do not agree with increasing NICs, as many small businesses are still on life support. Big hikes of this nature will only increase pressure on cashflow and reserves at a time when companies need to invest to grow."
"This is a textbook example of how to kick a person when they're down. Inevitably we were going to have to pay for the pandemic but aren't we still in the pandemic? For a nation that is still mourning the loss of 'normal life', it just feels like this is another blow and another reason for feeling thoroughly deflated."
"Things are tough enough as they are for us small business owners and the Government seems to want to make it tougher still. As a business owner you're effectively hit in the pocket twice with contributions both as an employer and employee. As we emerge from the pandemic it's like coming up for air only for another wave to knock you back under."
"I completely understand the need to increase tax receipts post-pandemic, but why should National Insurance bear the brunt of these increases? Corporate tax avoidance in the UK is shameful, so surely firms such as Amazon, Netflix and Google - who have seen profits surge during the lockdowns - should be brought to the taxman's dinner table sooner rather than later?"
"Frankly it's bloody annoying. What we have is a tax on jobs, which isn't a great idea with the furlough scheme about to end. Yet the low hanging fruit of unearned wealth and capital gains remain untouched. You have to ask yourself why? Probably because the elderly and wealthy regularly vote for the current party in power and they don't want to alienate their voters and party donors."
"Increasing NI affects the lowest paid but doesn't affect retired multi-millionaires. Once again the Government's approach is skewed to benefit the richest in society at the expense of the poorest."
"Whichever way this is presented, it's a tax hike - something the Tory manifesto on which they were elected said would categorically not happen. Not to mention that raising National Insurance would disproportionately impact younger people and lower earners as the rate drops from 12% to 2% on income above £50,000. So is it fair that people with triple locks on pensions who are also beneficiaries of the golden age of capitalism and have experienced the largest house price inflation over the last 40-50 years don't have to cough up, along with higher earners? It seems wholly unfair and not thought through. A better option would be to bring Capital Gains Tax in line with income tax rates. Increasing CGT to the same rates as income tax has the potential to bring in an additional £14bn in tax receipts, according to a report by the Office of Tax Simplification (OTS), a Treasury-based body. This would be more than enough to pay for the social care needs that have to be met, while leaving alone the income of the younger generation and lower-paid workers, who already struggle with trying to get on in life as best they can."
"The Manifesto pledge was put together prior to the global pandemic and, unless I'm missing something, the Government didn't have a crystal ball to know it was coming. Therefore, as much as we dislike any increase we all have to appreciate that tremendous costs have been incurred to keep the country going and they need paying back. I do however think that the NHS requires proper management of costs, we can't just rely on increased taxes without the costs being managed effectively, too."
"Yet another massive kick in the teeth for those hit hardest over the past year and a half, including those just entering the workforce to those small business who continue to be the forgotten! It also contradicts any form of so called “levelling up”. Shame on you, Boris."
"As a small business owner in the hospitality industry, single mother and with my parents soon to become octogenarians, it feels like yet another grab for the income I am clawing to keep hold of. Whilst I can’t deny Boris’ cause, I question the governments ability to actually deliver on this project without wasting our hard earned cash. The breaking of a manifesto pledge is sadly unsurprising for this government."
"Although I understand entirely why there's a need to raise taxes, the way it's been gone about is the issue here. In business, effective leadership is about fostering trust and inspiring others. As role models for leadership, our Government fails at the first hurdle. Why not have been honest? Say that this furlough scheme will need to be paid for in part through NI contributions. It's imperative we shape our own future and not play the role of victim to outside forces."
"As an employer I'm happy to contribute more to NI but as an employee I think it would be fairer to only add this increase to people who earn more than £50k a year. This protects those people on minimum wage, often working two or three jobs to make ends meet. We have the highest child poverty in the world for a developed nation, this tax must not jeopardise these families further."