David Cameron has called for immediate tax breaks for small businesses, probably in an attempt to win back voters who have been swayed back to Labour by Gordon Brown’s handling of the economic crisis.
He has stated his opinion that small businesses should be allowed to delay VAT payments for 6 months, in addition to a one percent cut in their National Insurance contributions.
As Britain is held in the vice like grip of recession, Cameron has claimed that the already struggling economy is likely to decline further next year. He believes that his plan to cut taxes would see positive effects immediately, whereas governmental plans to increase public spending to create more jobs would take too long to have a significant impact.
"Bringing forward capital projects is never easy," Cameron said. "That's why if you want to do something now to help, you are better off focussing on the cash flow problems of small businesses in the ways we are suggesting.”
The government have urged banks to ease up lending criteria as a way of improving prospects for small businesses in the face of recession. Hopefully a concrete agreement will be made soon, before too many enterprises are sucked into the economical black hole that is looming on the horizon.
By Danielle Williams
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