Tory MPs don’t often occupy pedestals by any means, but their latest calls for action may just see an ascent of their likability in the eyes of small businesses.
As of this week, Chancellor of the Exchequer George Osborne is set to cut business taxes, provoked by renowned Conservative MPs’ reports to permanently grant small firms exemption from business rates.
Last night, tory sources said Mr Osborne would observe their advice in his Autumn Statement on Thursday. The favourable movement has been encouraged by Conservative MPs’ calls to ease small firms’ burdens.
Attempting to win the majority, or simply adhering to a collective ideal, the conservatives have also called for income tax cuts.
In addition, the group of MPs, led by backbencher Kwasi Kwarteng, have initiated further support for councils to offer rate cuts to businesses who occupy empty properties. Perhaps uncharacteristically so, the conservatives advanced their beneficial ideas by suggesting the threshold of taxable income, at which firms have to register for VAT, should rise from £79,000 to £100,000.
Small companies are currently exempt from business rates until March 31st 2014, on properties with a rateable value of £6,000 or less, and get some relief on those whose rateable value is under £12,000.
Treasury sources say the Chancellor will have to ‘make a decision’ on what to do concerning business rate relief, as it is due to expire next year. Insiders seem to adhere that the likelihood of Osborne extending it until the General Election is high, but the ever-pleasing conservative MPs oppose this, stating that it should be made permanent.
The amount of business rates currently paid by all shops and offices is subject to the rateable value of the properly, denoting the amount the establishment could have been let out for at the last valuation in 2008. If their rateable value is under £6,000, small firms currently receive a 100% rebate on their business rate. Continuing to please, tory MPs have called for the rateable value threshold to reach to £14,000.
Chairman of the Treasury select committee Andrew Tyrie, and David Cameron’s envoy to the Indian community Prit Patel are amongst those to have signed the paper to date.
It is growing ever apparent that the conservative party and a popularity vote could imminently reconcile, as their recent forthcomings will undeniably satisfy small firms.
Mr Kwarteng said of the matter: “In preparing his Autumn Statement, George Osborne should consider how tough life is for many businesses. The combination of business rates and red tape is stifling people’s ability to drive the economy forward.”
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