Entrepreneurship is not being supported under Brown’s government and small business growth is steadily slowing down, an independent study commissioned by the shadow chancellor suggests.
Chancellor Alistair Darling is already facing mounting backlash following his Pre-Budget Report, in which he revealed plans to scrap capital gains tax taper relief, which has been dubbed a disincentive to enterprise.
According to The Telegraph, the study conducted by the European School of Management on behalf of shadow chancellor George Osborne will also suggest that the government is failing to achieve its goal of creating a culture of entrepreneurialism.
The study shows a sharp fall in the number of large businesses being created in Britain over the last five years, the paper reported. Whereas 29% of businesses were turning over more than £1m in 1998, only 16% are achieving this now.
Rising taxation and red tape are blamed for the slowdown in both business growth and the rate of start-up activity, and the study suggests that this is making the UK a less attractive place to run a business.
Duncan Cheatle, founder of The Supper Club and the creator of a 10,000-strong petition against the scrapping of taper relief commented last week that Darling’s Pre-Budget Report also showed a lack of support for enterprise.
He
said:
“In effect those of us who may look to sell our businesses in the future to those better able to build it further now face almost a doubling in the tax we will have to pay. How can this help encourage enterprise?”
The findings will be used by the shadow cabinet to undermine the government’s claims of ‘pro-business’ policy.
© Crimson Business Ltd. 2007
