New corporate tax forum must give small business a voice

The government has been urged not to ‘snub’ small businesses following the Chancellor’s decision to set up a new forum to review the future of the UK’s corporate tax system.

The warning came from the Forum of Private Business (FPB).

Alistair Darling took the opportunity of a Chatham House speech to announce plans for a working group to discuss how to make the business tax system more competitive and stable.

The group is to comprise ten senior representatives of major companies.

Given this focus on big business interests, the FPB said that it is concerned the government is ignoring the needs of small business.

The FPB said it believed that the UK’s smaller firms should be placed at the heart of any consultation on taxation.

Matt Goodman, the FPB’s policy representative, commented: “We can accept that the large multinational companies have more complex tax concerns than most small businesses, but the impact that higher taxes have on our members is just as damaging.”

Mr Goodman added: “Doing a better job of consultation, and discussions with the taxpayer, would help them understand the reasoning and process behind tax changes. By that logic, the Treasury should consider putting together a similar group focused on the process of small business taxation.”