A leading business expert says the Government’s Autumn Budget risks destroying entrepreneurialism, after it announced a series of stealth taxes and increase in outgoings for both employers and individuals.
Vipul Sheth, MD of Advancetrack, says the Chancellor’s move to raise the National Minimum Wage will sharply increase payroll costs for SMEs, adding to already record-high outgoings at a time when economic growth has slumped.
Vipul says Britain is witnessing a decline in entrepreneurial spirit, which he believes stems from the Government making the UK less attractive for SMEs and startups.
He added: “The freezing of tax thresholds means that, from the rich to the poor, every part of society is being squeezed by this Budget – but none more so than the owners of small and medium-sized businesses that are the lifeblood of our economy. While it’s easy for politicians to paint ‘the wealthy’ as fair game, many of these so-called affluent individuals are the very people who create jobs, pay wages and keep local economies moving – and they’re being hit from all sides.
“By raising National Minimum Wage levels, payroll costs for business owners will rise exponentially at a time when economic growth has already slumped – and these aren’t anonymous corporates with endless reserves; they’re individuals who often put their own homes and savings on the line to build companies that support thousands of families.
“What the country needs is stability and a clear plan to rebuild confidence. Instead, what we have is yet another set of measures that make the UK less competitive and less attractive for those capable of driving growth. If the Government is serious about economic recovery, it must stop treating both employers and employees as a convenient cash machine and start working with them.”
