COMMENT

The Chancellor’s decision to maintain the VAT threshold for UK businesses at £85,000 for the next two years, amid talk beforehand of it being substantially lowered, was welcomed by industry leaders.

The Federation of Small Businesses (FSB) described the Budget as a “businessfriendly” one amid “challenging times”.

Mike Cherry, the organisation’s national chairman, said: “The Chancellor’s vision for an inclusive economy includes a set of measures that will boost confidence across the small business community as they face extremely challenging trading conditions.

“1.5 million modest-earning small firms and the selfemployed will be relieved that we have seen off a VAT tax grab that would have caused huge economic damage.

“Instead, FSB is ready to work with the Treasury to simplify an over-complicated tax that on average takes a business a whole week to administer every year.”

Andy Willox, the FSB’S Scottish policy convenor, added: “The last thing that Scottish small firms wanted was a Budget which pulled the rug from under them.

“As many as 190,000 Scottish micro-businesses – like crofters, musicians and start-ups – could have been hit had the VAT threshold been lowered.”

However, tax experts pointed out that more small businesses would now be required to register for VAT.

Esther Wood, a partner at Blickrothenberg,said:“freezing the threshold at £85,000

“It will give small businesses the chance to focus on the administrative challenges they currently face.”

HAYDN ROGAN