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May 01, 2015

Entrepreneurs call for cut in corporation tax

Entrepreneurs call for cut in corporation taxA cut in corporation tax is at the top of the wish list for one in five entrepreneurs, according to a new survey by accountancy firm EY.

EY surveyed 150 entrepreneurial business leaders across the UK and asked them to select the areas that they believe the next Government should prioritise to fuel growth and then rank them in order of importance.

It found that 21% say a reduction in the levels of corporation tax is the most important issue, followed by 14% who are looking for an extension to tax relief measures.

Tackling infrastructure investment in the country's road, rail and air links should be the next Government's third priority (14%), ahead of action to increase funding for apprenticeship and re-skilling schemes, according to the poll. The fifth demand is for stronger links with universities to encourage new business start-ups.

There were distinct regional differences of opinion, with a third (31%) of entrepreneurs in the South East and South West citing investment in transport infrastructure as their number one priority, followed by an improvement in broadband speeds (19%). Corporation tax did not feature in their top five.

In London, entrepreneurs put a reduction in corporate tax levels at the top of their list. Northern respondents placed "the creation of hubs across the UK to drive innovation" top of their priority list (38%).

In the Midlands, the results highlight the difficulties firms are facing in sourcing local talent. Entrepreneurs in the region called for an increase in funding for apprenticeship and re-skilling schemes, with 27% classifying this as their second priority, after a reduction in corporate tax levels.

Stuart Watson, EY's Entrepreneur of the Year UK leader, said: "There is optimism in the air amongst entrepreneurs who have their sights set firmly on growth. A report released by EY in September last year revealed that 93% of UK entrepreneurs expected their turnover to increase in the next three years. However, 77% stated that attracting the right talent was a major barrier to achieving growth plans. The next Government needs to deliver clear policies to encourage dynamic entrepreneurs to continue to build jobs and prosperity, benefiting the wider economy."

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