AIFA calls on government to lower costs for small firms

Natalie Holt
21-Nov-2008
The Association of Independent Financial Advisers is calling on the government to lower rates for Corporation Tax ahead of the pre-Budget Report.
The trade body says the government should reconsider the planned April increase in the tax and lower it instead.

AIFA is also calling for the review of business rates to be postponed, in order to avoid a position where tax cuts are reclaimed via increased business rates.

Andrew Strange, policy director at AIFA, says: “Small and medium sized firms in all sectors have been affected by the financial turbulence. Financial services in particular have borne the brunt of this storm.

“IFA firms are experiencing the same issues as thousands of other small and medium sized firms. The clampdown on lending from banks has made it extremely difficult. Costs have risen as banks have increased charges on overdrafts and interest rates on loans.”

He adds: “That is why we have been calling for a fairer deal for small and medium sized businesses. We must make sure that the government intervention in the market provides extra liquidity to small business and is not just used to prop up banks’ balance sheets.”

The trade body also wants to see the establishment of a business support fund to help smaller firms.