Saatchi & Saatchi founder Lord Saatchi has called on the government to offer major tax cuts to the UK’s small firms.
In an article for The Telegraph the former Conservative party chairman said the government should abolish corporation tax for small businesses to allow firms to “challenge cartel capitalism” and remove capital gains tax for investors in small firms.
Lord Saatchi, who is now the chairman of the Centre for Policy Studies (CPS), said the “call to arms” tax measures would be to the benefit of everyone by allowing smaller firms to better compete with larger competitors.
He said the policy would show “how the awesome power of taxation can be used to the benefit of everyone”.
“The Policy, as I call it, would therefore abolish corporation tax for 90 per cent of UK companies, reduce the deficit faster than predicted by the Office for Budget Responsibility (OBR) , expand employment faster than it predicts, increase competition, challenge cartel capitalism and let millions of people grow tall.
“The nation as a whole will benefit from a change in culture as big as Right to Buy in the Eighties; there will be greater economic growth and lower unemployment than currently forecast by the OBR, more competitive market places, and more freedom and independence from Big Government and Big Companies,” Lord Saatchi said.
In a new report, celebrating the 40th anniversary of the Margaret Thatcher-founded think-tank, the CPS calls on the government to stop imposing corporation tax on firms with fewer than 50 employees.
According to the report, just 0.8% of all UK businesses are classed as “big” or “medium sized”.