In the past two years the government has announced initiative after initiative in an attempt to kick-start the stagnant economy and address job shortages. The effect so far has been minimal. We need some decisive action to be taken by those in charge in order to get our economy back on track.
Encouraging young companies to grow is perhaps one of the most important issues that this budget needs to tackle so some fresh and innovative thinking may be required. I would like to see a corporation tax reduction of one per cent for each of the first 10 employees you have paying national insurance. So, if you employ 10 full time staff, your rate will fall from 20 per cent to 10 per cent. Capped for the first two years, it would really encourage companies to grow quickly and take on more staff.
If such flexibility is not feasible, many businesses would be content to see a straightforward reduction in the basic rate of corporation tax or an increase in the number of years a start-up is exempt from contributing. If implemented this would put us on a more equal footing with the Republic of Ireland and enable UK businesses to be more competitive in terms of investment.
For the sector in which we work - the games industry - one of the most pressing matters in the upcoming budget is a sector-specific tax relief as outlined by TIGA, the association that represents the UK games industry. TIGA have submitted evidence to the government detailing how a revised tax relief could be massively beneficial to a large number of start-ups and small development studios. Small businesses are hugely important to the games industry but we require a stable home business environment in order to thrive in an increasingly competitive global market.
A one-size-fits-all approach to business is not the answer to the country's economic problems. But better investment in start-ups and in growth economies such as the creative industries will certainly stand us in good stead for the future.
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