Federation of Small Business hits out at Therea May’s’ Broken Promises

Federation of Small Business hits out at Therea May’s’ Broken Promises

The Federation of Small Buisness (FSB) has kicked hard at the Conservatives for penalising the self-employed in the latest Budget presented to Parliament. 

Speaking just before the General Election, David Cameron could not have been clearer that a Tory government would NOT raise National Insurance. He vowed that the Tories would not raise taxes for working people and warned  that other parties would put up taxes:

“I make this pledge, that if you elect me as your Prime Minister there will be NO increase in VAT, NO increase in National Insurance, NO increase in income tax… I know we can do what needs to be done without reaching into the wallets of hard working people and taking their money. So I make this pledge. I make the pledge on the card today…”

“I say working people in this country have paid enough tax. As this economy recovers I want you to be able to keep more of your own money to spend as you choose. ..”

” I say let us be on the side of working people: you have paid enough tax, I’ll keep your taxes down, I’ll be cutting your taxes, you’ve paid enough, it’s time for waste in government to go, it’s time for reform of welfare, it’s not time for higher taxes on working people. That is the right choice. That is the right future for our country.”

The FSB say:

“The National Insurance rise to 10% next year and 11% in 2019 should be seen for what it is – a £1 billion tax hike on those who set themselves up in business. This undermines the Government’s own mission for the UK to be the best place to start and grow a business, and it drives up the cost of doing business. Future growth of the UK’s 4.8 million-strong self-employed population is now at risk. Increasing this tax burden, effectively funded by a reduction in corporation tax over the same period, is the wrong way to go…

The genuinely self-employed are fundamentally different to employees – they are the risk takers that spearhead growth and productivity in our economy. They need help and support from Government given the spiralling costs of doing business, not additional tax burdens. This measure is a tax grab on middle income self-employed people, who are just about managing. Class 4 National Insurance Contributions (NICs) will apply from about £8,000 to £45,000 in profits. Millions of self-employed will now face this tax hike, including plumbers, hairdressers, designers, musicians and many others in all our local communities…”

The Centre for Economics and Business Research also piled on the criticism, saying:

“People who work for themselves and who set up and run companies should be encouraged. Instead the Chancellor has singled this group out for a £1,425m tax hike on the misleading ground that they pay less tax, ignoring the risks they take. Disdain to this group is a typical Treasury attitude. Many of the self employed are IT consultants and are especially critical to the economy.”

Prime Minister Thersa May was a senior member of David Cameron’s Cabinet and shared collective Cabinet responsibility for the Conservative election manifesto promise which she is now breaking.

Submit News Contact us with your community, business or sport news. Phone 07581350321

Email ots@otsnews.co.uk

Facebook www.facebook.com/Otsnews-Southport-1575528676012039/

Twitter  www.twitter.com/onthespot_news

Breaking local news as it happens, searchable archives with photographs, the ability to instantly comment on news articles – there are so many advantages to OTS (Onthespot) News.

If you want your news read locally online then send it to ots@otsnews.co.uk – relying only on the newspaper is to restrict yourself to an ever reducing audience