Tory tax cut proposals welcomed by the BHA

The British Hospitality Association (BHA) has thrown its weight behind Conservative proposals to ease the tax burden on small businesses.

Tory leader David Cameron today called for businesses with four employees or fewer to be given a temporary tax cut of 1p on national insurance contributions to help them cope with the economic downturn.

In an interview on the Today programme on BBC Radio 4, Cameron said that a tax cut of this kind, costing the Treasury an estimated £225m, could offer immediate help to small firms struggling to pay their bills.

The announcement follows the publication of a Conservative proposal yesterday that would allow firms employing up to 250 people a six-month holiday on VAT payments.

The BHA, which has been in discussions with the Government over some form of tax relief to soften the effects of the credit crunch, welcomed the principal of the proposals – but said they should go further.

A BHA spokesman said: “We're pleased that there is recognition that small businesses need support in such a difficult time, and the Conservatives' proposals are welcomed - but why restrict assistance to businesses employing fewer than four people?  There are many larger businesses which are equally affected and need equal support.”

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By Daniel Thomas

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