Private firms concerned about tax regime

About 66% of UK firms believe that the current UK tax regime fails to support and encourage enterprise.

According to PricewaterhouseCoopers’ Enterprising UK 2009 survey, just a fifth of private companies believe the government genuinely takes the concerns of the business sector into account.

The most common concern was over the simplicity and stability of the UK’s tax system, with 25 per cent of executives calling for a reduction in uncertainty and the rate of change.

This figure was up from eight per cent of respondents in 2006 and 17 per cent in 2007.

Mary Monfries, head of UK private business at PricewaterhouseCoopers, said firms are calling for a stable, certain tax environment in which to conduct their business successfully.

She added: “Reducing tax rates would be a challenge in the current economic climate, but a reduction in the rate of change and uncertainty should be easier to deliver.

“Private businesses are not looking for a crutch from government – an overwhelming majority are taking active steps to help themselves in managing through the recession. However, they do want a more effective voice.”

Last week, Deloitte reported that many firms are set to overhaul their balance sheet practises in light of the recession.

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