Two-thirds (62%) of small business owners do not think the government backs them to success, a YouGov poll for the Centre of Policy Studies has revealed.
The findings formed part of a report by Nick King, former specialist advisor to Sajid Javid when he was business secretary. King argued that there is too much legislation around small businesses – those with an annual turnover of less than £1million.
The report calls for a major reform of the tax system. It suggests for small businesses, corporation tax, business rates, VAT and Employer’s National Insurance should be replaced with a single levy; the Simple Consolidated Tax (SCT).
Sajid Javid told City A.M: “This report shows how bureaucracy and paperwork are stifling the growth of our small businesses and offers a series of compelling ideas for how Government can roll back the tide”.
Ryan Barnett, economic policy advisor at IPSE said: “The UK’s tax system is a mess. Entrepreneurial, innovative and productive microbusinesses are being dragged down by a telegram tax code in the broadband age. Simplification will cut costs and boost the positive impact of self-employment for our economy.
“The current government has done very little to support the self-employed despite the £275bn they add each year; we urgently need a change in attitude and action.”