The Chancellor’s Budget punishes ambition, undermines aspiration and will backfire on Brexit Britain, affirms the CEO of one of the world’s largest independent financial advisory organisations.
Nigel Green, founder and chief executive of deVere Group, is speaking out after Philip Hammond announced in his first Budget plans to increase the taxes paid by the self-employed.
Mr Green says: “This tax grab will hit millions of Britain’s hardworking entrepreneurs. This group of self-reliant people are the lifeblood of the economy. They take on the risks and expense of running a business, whilst simultaneously creating jobs and wealth.
“Hiking taxes on the self-employed punishes ambition and undermines aspiration to get on in life.
“Slapping on extra penalties and putting up additional barriers disincentivises people from launching new enterprises.”
He continues: “Placing extra burdens on the self-employed will, I believe, turn out to be a masterclass in the law of unintended consequences. It will backfire by further reducing the tax base to even fewer people.
“It will encourage people to remain in lower-paid employment, rather than contributing to the economy more productively and more widely by setting up their own businesses. It will discourage investment and job-creation – the opposite of what’s needed for long-term, sustainable economic growth.
“Surely, if the UK is to thrive outside the EU, it should be aiming to keep and attract more entrepreneurial self-starters. Why is the government seemingly driving them away or driving them to be less economically productive?”
Mr Green goes on to say: “What many will find particularly galling is that the Chancellor has more room for ‘giveaways’ as an expected downturn failed to materialise in the wake of the Brexit vote last June, and with the UK economy predicted to grow by 2 per cent this year.”
The deVere CEO concludes: “Clearly, the government needs to plug a hole in its finances to help manage the social care crisis and other matters, but imposing a tax hike on self-employed wealth creators is not the answer. Indeed, it is incredibly short-sighted and could have long-term, adverse effects for the UK.