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Mandelson rejects business tax rise
Paul Waugh, Deputy Political Editor20 Mar 2009
TREASURY plans to slap a £20billion tax rise on business are being opposed by Lord Mandelson amid fears that it would tip many firms over the edge.
Chancellor Alistair Darling last year ordered large increases in business rates, based on a five per cent inflation rate last September. But by January inflation fell to 2.4 per cent and business groups believe lower prices should be reflected in rates.
Many companies say large increases in business rates would be disastrous and could mean the difference between staying solvent and being forced into bankruptcy.
Lord Mandelson's Department for Business, Enterprise and Regulatory Reform has decided to reflect those fears and is privately backing calls for a fresh look at the rate. Lord Mandelson is keen to support business following criticism from the CBI over his failure to implement loan guarantee schemes speedily.
The battle between the Treasury and the business department follows a tougher line from Mr Darling over public spending and the need for savings across Whitehall.
Reader views (10)
Quote: TREASURY plans to slap a £20billion tax rise on business are being opposed by Lord Mandelson amid fears that it would tip many firms over the edge.
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Are they not tipped over the edge already?
Would it not be better to tax the poor much more heavily; as they have the dole money to spare.
- Mickyinlondon, london, 22/03/2009 10:14
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Too late to stop. The action needed is start to decrease business tax NOW !
- Joe, Swanley Kent, 21/03/2009 13:03
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All a show, to show they are listening, but they are really desperate for money, and it can only come from the private sector.
Probably been orchestrated over recent weeks and they know what is going to happen, even now. However, need to put on a show....
- Hugh, Middx, 20/03/2009 18:57
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Standard Labour Procedure: announce an unpopular move and then announce that it won't be introduced a few months later. Get hailed as new Messiah and then move on.
In the old days this used to be called a U-turn. We have your number Mandy and are not fooled.
- Nobby Clark, Perth, Scotland, 20/03/2009 16:59
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Well done Peter. Good to see Labour is leading on this issue as on so many others
- Keith Price, Luton, England, 20/03/2009 16:35
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the green custard therapy appears to have been a success,
mandy seems to be talking sense. perhaps the same 'spa' treatment might help the rest of the politicians to start talking sense.
we could witness tankers full of the stuff queuing to get into Westminster and a ritual shower as the all powerful enter the hallowed halls of power.
then we could further apply it to the local council chambers.
an end to rhubarb as green custard beckons in a new era of common sense.
- Mike O'Brien, london.uk, 20/03/2009 16:14
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Of for the love of God, are we supposed to fall for this: Mandelspin orders the treasury to leak tentative plans just so that he can leap to the defence of the small business and gain some brownie points? Puuuuuulease? I am getting annoyed by “Lord” Mandelspin’s attempts to dupe us.
- Disgruntledislingtonian, London, 20/03/2009 15:59
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Brown seems unable to grasp that the majority of the electorate are struggling financially, and without these businesses the economy will suffer even further. No businesses, no consumer spending!
The housing market is dead, yet the Government insists that the useless HIPS are now commissioned before a property goes onto the market! Why does he scrap this pointless gimmick in the hope of kickstarting the housing market? If Brown wants to claw back money, then he should do what Obama is proposing and levy a tax of 90% on any bonus payments over £250,000. He always target the vunerable. Look at the fiasco with the 10p tax rate, and the reduced VAT rate has done absolutely nothing but generate unnecessary administration for those force to implement it.
He's also raising fuel tax in April. Talk about pouring water on a drowning man!
- Sonia M., st albans, herts, 20/03/2009 15:51
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The 2010 Reval must go ahead as to fall into these scare stories will harm UK plc.
The burden felt by the South East can onle be slightly reduced by the Revaluation where our Northern cousins will receive RV increases but not neccessarily liability increases.
The fairness of the system will be compromised leaving good old London and S.E. holding the Baby - as per usual.
Regular Revals means fairness.
The Chancellor can do what he likes with the NNDR multiplier from Budget to budget despite the 1998 Act setting NNDR increases at inflation (as measured by the September RPI).
- Roderick Bisset, Crawley, W Sussex, 20/03/2009 13:09
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Such thoughts are totally over the top (OTT). Business premises rates need a drop NOW. To ignore this will increase an even bigger decline in small retail outlets.
Get your act together Government!
- Tony Islander, Herts, 20/03/2009 12:10
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