Griffith warns against tax rises for small businesses
Shadow Chancellor Andrew Griffith will caution that the government cannot afford to raise taxes in the upcoming Budget, following similar warnings from his predecessor, Rachel Reeves, reports BritPanorama.
In his first major address since being appointed shadow chancellor by Tory leader Kemi Badenoch in late August, Griffith is set to highlight that small businesses face excessive taxation, adding that the complexities of the tax system impose additional burdens. He argues that the process itself feels like a tax on small enterprises, contributing to their financial strain.
Before the speech, Griffith stated, “Labour are squeezing small businesses dry. They are taxing them too much and crushing them with a complex tax system that is working against them.
“Labour’s jobs tax and business rates raid have done immense damage, and their employer red tape has placed yet another burden on the shoulders of businesses. On top of these costs, the average small business now spends more than a working week every year managing the government’s paperwork.”
Griffith emphasized the need for tax reductions and a simplified tax navigation process. He has called on his Labour counterparts, including Andy Burnham and John Healey, to guarantee no tax increases at the Budget, including a commitment not to implement an exit tax or introduce any new taxes.
“Unlike Labour, the Conservatives are listening to business, and we are committed to making tax lower and simpler,” he added.
In addition to these remarks, Griffith will unveil plans to establish a taskforce aimed at reforming the tax compliance system, with the goal of alleviating the pressures faced by small businesses. The initiative will be led by Tory peer Lord Mackinlay of Richborough and Robert Colvile, the outgoing director of the Centre for Policy Studies.
According to estimates from the Federation of Small Businesses, small firms are collectively burdened with annual costs of £25 billion related to tax compliance, with owners spending an average of 44 hours each year on tax-related paperwork.
In response to Griffith’s initiative, Mackinlay remarked, “Small businesses and the self-employed are the backbone of the nation but have spent far too long being penalised by the state simply for wanting to just get things done. I’m honoured to work with the shadow chancellor to put this right for the millions of people up and down the country who are the main drivers of growth in the economy.”
