Pictured: Alistair Wesson, regional director of RSM Tenon in
the East Midlands
62% of entrepreneurs in the Midlands say the Government should
reward SMEs with tax breaks, according to a new report commissioned
by RSM Tenon.
As part of Global Entrepreneurship Week, RSM Tenon commissioned
the report to establish the state of the UK's environment for
entrepreneurs. The report, Lonely at the Top, to be released later
this month, has found:
• Many entrepreneurs surveyed say the tax system should do
more to recognise the distinctive role played by them in the
economy, with 64% in the Midlands saying the abolition of the 50%
income tax band would do much to encourage new
entrepreneurship.
• 62% of those surveyed in the Midlands say that
entrepreneurs who employ more than 100 people should be taxed less,
in recognition of the contribution they make to the
economy.
• 48% of entrepreneurs in the Midlands say they feel the
environment for entrepreneurs in the UK had deteriorated over the
past three years, compared to the national figure of 40%. However,
many still believe that the UK has a strong culture of
entrepreneurship, high quality business intermediaries and a
positive international reputation.
RSM Tenon is also taking direct action with the Government to
highlight UK's entrepreneurs' important contribution in the fight
to rescue the current ailing economy.
An online petition has been launched as part of a special
Entrepreneur's Manifesto to demand that UK entrepreneurs pay a
lower rate of personal tax if their companies provide much-needed
job opportunities.
RSM Tenon figures show that if less than ten per cent of SMEs
currently employing up to 250 staff took on only one extra
employee, then this would inject over £1 billion into the
economy in tax - and far more in total spending power.
Alistair Wesson, regional director of RSM Tenon in the East
Midlands, said: "Entrepreneurs should be seen by the Government as
key allies in kick-starting the UK economy. They say that
entrepreneurs are the lifeblood of the economy, and yet the level
of taxation on them is at its highest for 30 years. There is no
doubt in my mind that the current 50% higher tax rate is a massive
disincentive to growth, and it is time the Government put its money
where its mouth is and started to 'relax tax' for
entrepreneurs.
"It is clear to us that the UK tax system needs to support
Britain's businesses, and government must tackle the red tape that
currently stifles SMEs. This is basic stuff - but could make a huge
difference the environment for entrepreneurs in the UK.
"The time is right to act, and we urge everyone to support
Britain's entrepreneurs and sign our petition today."
To visit the RSM Tenon e-petition, go to:
http://epetitions.direct.gov.uk/petitions/20692