Britannia Anchor Removals MD Condemns VAT hike
The Managing Director of a SME in Greater Manchester has condemned the coalitions decision to raise VAT, claiming it has ?put his company back 2 years?. Chris Smallwood, Managing Director of Britannia Anchor Removals Ltd, a small family run moving company stated ?the rise in VAT has hit our business hard. The removals industry is being hit on several fronts, from increased road tolls, London Low Emission Charges, massive increases in fuel costs and now VAT. It?s never ending and the government needs to recognise that if they are to promote private enterprise, then they must take into account the damage done by this unfairest of taxes?. Mr Smallwood reasoned ?the need to cut the deficit must be balanced out against the need to promote private sector growth. The deficit can be reduced over a much longer period of time, the measures do not need to be so draconian? As a supplier to the public sector there are also worries for the small mover and he used an analogy to explain his ?alternative budget?, he continued, ?If you have a big mortgage and you are struggling to repay, then it is wiser to spread the payments over a longer period, hence reducing the repayments. I suspect there is cynical politics going on here, with the coalition trying to get all the bad news out of the way early in this parliament, then trying to offer tax cut bribes to the public when the next general Election comes around!?
Mr Smallwood has noted that whilst enquiries in his business were up on the previous years figures, the actual conversion rate was down, claiming the VAT rise has pushed client into the hands of ?cash movers? and non vat registered companies. ?this will put the buying public at risk of choosing unprofessional outfits and will inevitably lead to an increase in rogue traders and poor service?
Although we are unlikely to see VAT decrease, clients are advised not to fall into the trap of using Removals companies who are not working to the OFT (office of Fair Trading) Consumer Code of Practice.
For more information contact Chris Smallwood at www.anchorremovals.co.uk or visit the OFT and BAR websites
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