April Tax Rises Stopping Small London Firms From Growing - Study

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A business group has warned that many small to medium businesses (SMEs) in London will struggle to survive because of new tax changes that come into force in April.

The London Chamber of Commerce and Industry (LCCI) surveyed 150 firms in the capital and found around two-thirds of them were going to scrap or lower pay increases and stop hiring new staff in order to stay afloat.

It also found that firms were also considering cutting bonuses and almost one in five were even looking to leave the UK entirely.

The Treasury has said it has ⁘achieved a great deal in a short period of time⁘ including measures protecting ⁘the smallest businesses⁘.

Chief executive of the LCCI Karim Fatehi MBE said: ⁘I would ask the government to review the decision especially on employer national insurance and provide the platform for businesses to grow.⁘

The business has already started to close half an hour early to save on electricity and staffing costs.

⁘With staff wages going up it's going to have a massive impact. We are going to not be able to employ new staff.⁘

⁘Anything to help the small business would be helpful, especially regarding electricity. I feel they are helping employees more than employers.⁘

Adrian has seen a rise in demand as people try desperately to avoid the stamp duty threshold changes in April.

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