Tax breaks and less government red tape are top of the New Year wish-list for the Midland businesses community according to new research from Yorkshire Bank.
More than a quarter of Midlands businesses – 30 per cent – feel a reduction in tax is the single change that would make the biggest difference to their ability to get through the recession.
And over a further quarter – 27.5 per cent – would like a reduction in government red tape such as simplified regulation or less paperwork.
Steve Cronin, managing partner at Yorkshire Bank’s Financial Solutions Centre in Temple Row in Birmingham, said: “The Government has acted this year to make the UK as healthy an environment as possible to do business.
“However, the sentiment being felt on the ground is that those measures may not have gone far enough.”
“The effects of a recession can be felt long after the end of the downturn and this research shows that businesses feel government support should be long term, practical and more far-reaching.”
The bank’s research also shows support for increased government grants and for the current reduced VAT rate to have been made permanent instead of ending in January as planned.
It seems to be the younger generation who feel most burdened by tax, with a third placing its reduction at the top of their business’s wish-list.
However, it is this younger age group that is also seemingly less concerned than any other about the issue of government red tape, with less than a fifth wishing for a reduction.
Despite the call for tax breaks, research released earlier this year by Yorkshire Bank showed that more than 90 per cent of UK businesses feel the UK is still the best place for them to do business. The majority – 66 per cent – also believe that the UK will start to experience an economic upturn by spring 2011 and nine out of 10 business managers are confident that their company will survive the recession.