Chancellor failed to help rural business
10:46am Thursday 27th March 2008
The Chancellor has failed to take any action to stem the haemorrhage of cash flowing out of the countryside and has done nothing to provide rural businesses with a much needed transfusion according to the CLA, the rural economy experts.
CLA Wales director Julian Salmon said that the Chancellor had done nothing to help small unincorporated businesses - which included the vast majority of rural businesses - and that for small, incorporated businesses the rate of corporation tax has actually increased from 19 to 21% - and will rise to 22% - at the same time as allowances had fallen.
The CLA say that the much vaunted cut in the headline rate of corporation tax from 30 to 28% actually only applied to businesses whose profits exceeded £1.5m - which excludes the vast majority of businesses based in the countryside.
Mr Salmon added that coupled with other problems, such as the loss of the agricultural buildings allowance, the Treasury was allowing money to flow out of the rural economy but putting little back.