Entrepreneurs in new "climate of fear"

by Matthew Rock - Monday, 15th October 2007 - (3) comments

By scrapping business taper relief the government has reversed all its good tax incentives and created a "climate of fear", says one leading entrepreneur.

In an open letter to the prime minister, supported by an online petition, Lewis PR founder and chief executive Chris Lewis has joined the growing discontent over the introduction of a flat-rate 18 per cent capital gains tax regime, announced in last week's pre-budget report.

"The proposed scrapping of business taper relief damages us in many ways. We can cope with re-jigging our plans. We aspired one day to join the stock market, but that will now have to wait. The most damaging thing of all is the new climate of fear. We’d grown up trusting a labour government, but if this can happen so quickly with no consultation, what’s next?"

This morning, the four leading business organisations – the CBI, IoD, Chambers of Commerce and Federation of Small Businesses – called on chancellor Alistair Darling to reverse his decision abolishing business taper relief.

To read a copy of Lewis's letter, click here.

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3 Comments

October 15, 2007 9:29pm
Sara Render Says:

This move will cost all of us who have started businesses a fortune and make it more difficult to get external investors - the lack of warning is un-nerving, what next?!

October 15, 2007 5:11pm
Mayank Patel, Chairman, Currencies Direct Limited Says:

Our Goverment should look to embrace and fully support the spirit of business and entrepreneurship- this recent change will have damaging effects.

October 15, 2007 4:26pm
David Pollock Says:

Scrapping taper relief is a disgrace. How can business trust new or is it really old labour. I though they where pro business and enterprise or is it just more spin