Flexible Vehicle Contracts MD makes plea to Chancellor
Phil Roberts, managing director of Barton-under-Needwood based fleet vehicle specialists, Flexible Vehicle Contracts, said urgent action is needed to support business and create job opportunities.
Phil, who established the business 15 years ago, said: ‘I think that a reduction in the current VAT rate is overdue and could give the economy the kick-start it so desperately needs.
‘I believe the Government made the wrong choice to increase VAT rather than National Insurance. Simply put, if I am a business owner employing staff, that means I'm reasonably happy with the state of my business. National Insurance is effectively a tax on me employing staff and we need staff when we are doing well.
‘So paying an extra one per cent NI is negligible and would not have an adverse effect on my business. However, the increase in VAT has a direct impact on individuals and on our retail business. It increases costs and makes the products we are selling less attractive which could result in less business, less income for HMRC and, in the long term, may have a negative effect on staffing levels.’
Chancellor George Osborne is under pressure to help businesses fighting the recent economic turmoil with a range of tax incentives and support when he delivers his Autumn Statement on Tuesday, November 29.