We found out what the leading minds and voices of the small
business world, from the BBC's business editor to the Confederation
of British Industry, have to say about our new government and the
impact it will have on you.
Phil Orford, CEO of the Forum of Private Business
(FPB)
"Fixing the public finances must be at the top of the agenda.
The Conservative-led coalition must be absolutely clear about where
spending cuts will fall, and about the need to curb relentless
growth in the size and cost of the public sector. They must also
follow through on their promise to roll back the planned employer
National Insurance rise in any emergency Budget.
"The next ninety days are crucial for recovery. We need concrete
proposals to reduce red tape and tax burdens on business; action to
move the economy away from consumption and the public sector and
towards exports; and commitments to improve Britain's key business
infrastructure."
Richard Lambert, director-general of the Confederation
of British Industry (CBI)
"The agreement between the Conservative and Liberal Democrats to
form the next Government is welcome news. Business wants to see a
stable Government with the authority to take the tough decisions
that will be required to keep the economic recovery on track and to
get a grip on the fiscal deficit. This coalition should have the
votes and the mandate to get on with the job.
"In the past few days, leaders of all three of the main
political parties have emphasised their commitment to restoring
fiscal stability in the national interest. That must be their
overriding priority in the months to come."
Speaking at today's Entrepreneurs' Summit (via @stuart_rock), Lambert also said small
businesses really matter but questioned whether the country's
financial structures up to the task of financing them. He is not as
sure as Shakespeare about positive change to the procurement
process. He also expects taxes to go up.
Robert Peston, business editor of the BBC
"What may shock many investors is that the coalition will
more-or-less adopt the Lib Dem's policy on raising the capital
gains tax rate to streamline it with income tax. That means the top
rate of CGT will be at least 40%, and possibly 50%.
"However a much lower rate will be applied to 'entrepreneurial'
business investment: the higher capital gains tax rate is aimed at
extracting more revenue from speculation, but there will in a sense
be a return to the system only abandoned by Labour a couple of
years ago, where there were significant tax rewards for those who
invest in wealth-creating activities for longer."
Read the rest of this article here.
Jean Eaglesham, chief political correspondent
of Financial Times
"The 18% rate of tax on gains on non-business assets will be
increased to close to the 40% higher rate of income tax, meeting a
central plank of Lib Dem policy, according to Tory insiders. There
will be 'generous exemptions' for profits related to business, in a
bid to offset concerns about the potential chilling effect of the
tax increase on entrepreneurs.
"The revenue from the tax rise will be used to help fund a
significant increase in the income tax threshold to help lower-paid
people, taking effect in April. The new government, with George
Osborne as chancellor, will also agree to subsequent real terms
increases in this threshold, as part of a longer term goal of
meeting the £17bn Lib Dem policy of raising the income tax
exemption to £10,000.
"The income tax change means the government will not implement
the Tory commitment to reverse Labour's planned 2011 one percentage
point national insurance rise for employees. But the £3bn reversal
of the rise in employers' national insurance will take effect - a
commitment that will be strongly welcomed by business."
Read the rest of this article here.
Peter Ibbotson, Lombard
Speaking at today's Entrepreneur's Summit (via @stuart_rock), Ibbotson said the Conservatives
are talking about relook at guarantee schemes for small and
medium-sized businesses. He said this is a big opportunity to use
programmes for new entrepreneurs.
Stephen Shakespeare, YouGov
Speaking at today's Entrepreneur's Summit (via @stuart_rock), Shakepseare said there will be
more government contracts open for SMEs, and this will be huge
positive difference for entrepreneurs. He is optimistic about a big
change in the procurement process.