Forum warns against increasing tax on UK's wealthiest

The Forum of Private Business (the Forum) has warned against increasing taxes on the wealthiest people in the UK as it could harm entrepreneurs as well.

Phil McCabe, spokesman for the organisation, said small business owners "already pay more than enough tax" and that increasing the Income Tax rate of the richest people will not help lower this trend.

Furthermore, he explained that the country needs innovation more than ever as it continues to fight back against economic difficulty.

"The concern is that increasing taxes for the wealthy will necessarily mean adding to the tax burden faced by entrepreneurs," he noted.

"The concern is that it could lead to brain drain and that entrepreneurs could set up new businesses outside of the UK, which is obviously not what we want to see and not what the country needs."

Meanwhile, the government has announced plans to cut business red tape in Whitehall from January next year, saying that it will be introducing a "one in, two out" policy on bringing in and removing rules.

Posted by Thomas Fletcher

Last updated: 27th November 2012