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Research finds 83% businesses hope to freeze corporate tax rises

83% of Owner Managed Businesses (OMBs) want the government to freeze corporate tax increases until the economy has fully recovered, according to the advisory firm Moore.

A survey of 151 OMBs found that many SMEs believed a rise in tax would cause a blow to both business and consumer confidence.

Sue Lucas, partner at Moore, said: “If the Government raises taxes too early it could choke off any recovery. Once the lockdown is over, we’ll need consumers and businesses to spend, they won’t do that if the Government is soaking them in extra taxes.”

The quarterly report also stated that 86% of OMBs would like to see Government assistance provided to those who most need it, with a form of means testing given the greenlight by 73% of those surveyed.

More than four out of five businesses feeling the Government should be scrutinised by fraud shows that companies are also concerned over the “ease and speed” of which taxpayer money is currently being spent.

Lucas added: “As the size of the Government aid programme grows and news over the level of fraud emerges, businesses are getting more sceptical over the apparent ease and speed at which taxpayer money has been given away.”

“There is a disappointment that so much furlough money and subsidised lending is leaking out to fraudsters or being claimed by profitable corporate giants who don’t need the help. Obviously, tightening processes too much would mean those who need and deserve CBILS or furlough funding might get it too late. But there is a middle ground to be struck.”

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