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Midlands businesses plead with PM for tax roadmap and simplification ahead of emergency Budget, in BDO poll

Midlands businesses plead with PM for tax roadmap and simplification ahead of emergency Budget, in BDO poll

Kyla Bellingall, partner and head of BDO LLP in the Midlands, said:

“Midlands businesses are looking towards Liz Truss and her new Government for a five-year plan for business taxes to allow them to invest in the future as we head into a tough winter and an anticipated recession. When asked what single tax change would help them the most, 34% of Midlands business leaders said the roadmap was key. Another 30% are calling for an overall simplification of the current tax system and 57% of businesses in the region believe employment and payroll taxes are in the greatest need of simplification.

“Chancellor Kwasi Kwarteng has set a UK economic growth target of 2.5%, and while many businesses in the Midlands clearly have the ambition to grow, they are calling for targeted support to do so. According to BDO’s poll, 30% of companies in the Midlands stated that only the abolition of the rise in corporation tax from 2023 would give them enough confidence to invest for growth against today’s economic backdrop. Another 23% said they would commit to capital investments if the super deduction continued and worryingly, one in four business leaders shared that no tax incentives could encourage them to invest in the current climate.

“Right now, businesses in the region are being forced to take drastic action in response to spiralling costs and supply chain challenges, whether it’s reducing their physical footprint, cutting operating hours, or reassessing their headcount, and they are looking at the Government to back them up with decisive action, clarity and simplification.”


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