Accountants 'have little faith' in Brown's policies

News Article - 24 November 2006
Category: Business

The policies of chancellor Gordon Brown have negatively impacted upon business, financial directors have said.

A survey conducted by BDO Stoy Hayward found that 49 per cent of financiers thought Mr Brown's strategies have so far had a fairly negative or very negative impact upon UK business, compared with eight per cent who said the impact was very positive, Accountancy magazine reports.

Corporation tax was found to be the biggest gripe among the finance workers, many of whom want to see a cut in the 30 per cent rate. Some six per cent were confident of such a cut being announced, however.

BDO tax partner Stephen Herring said: "The chancellor is in danger of leaving a legacy of both increasing tax complexity and the retaining of an uncompetitive income tax rate."

Carousel fraud was also noted as a financier concern. Tax partner at the firm, John Cairns, said that directors were allied with Mr Brown in fighting fraud but were also keen that doing so did not include "unnecessary bureaucracy", the Scotsman reports.

Peter Penneycard, national director of tax of accountants PKF, told Shout99 that many businesses are choosing not to set up their headquarters in the UK "because of the comparatively punitive corporate tax regime".

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