Tom McGinness, the head of middle markets in London at KPMG had this to say about the Budget:
“Smaller businesses are ultimately looking to survive in today’s difficult climate. Their needs are simple –more cash and less administration. Overall the Chancellor’s Budget could have done more to stimulate growth and confidence.
“Focusing on cash, the ability for companies to spread payment of this year’s increase to business rates over three years is a welcome introduction, as is the ‘top-up’ trade credit insurance system that should help businesses maintain their finances.
“However, the cash rebate produced by the extension of the loss carry back rules is not significant enough. And although it is positive that the small companies’ corporation tax rate is staying at 21% it is still the highest it has been in recent years despite the recession.
“In terms of the compliance burden for smaller companies, the budget has done little to reduce this. We had hoped that the predicted increase in VAT rate would be deferred to reduce the administrative burden on smaller business but are disappointed to see that this is being raised again on 1 January 2010.
“Overall it would appear that the government have not listened to the request from many commentators to stimulate enterprise and economy for smaller businesses.”
Budget 2009 – KPMG view