Resellers have called on Chancellor of the Exchequer Alistair Darling to slash red tape and relax employment laws as he prepares to give his first full budget speech on Wednesday.

Mike Lawrence, managing director of BentPenny, was typical in his views. “There are so many rules and regulations that employment rates will have to drop.

“It is killing businesses, which are ending up as a one-man band running out of a back room, because it is safer,” he said.

The Forum of Private Business (FPB) recently warned that the budget is likely to heap an unfair tax
burden on smaller firms, with the proceeds being passed on to large corporations.

Darling indicated in his Pre-Budget Report and Comprehensive Spending Review that small firms’ corporation tax would rise from 19 to 22 per cent from April.
Larger firms will see their contribution cut from 30 to 28 per cent.

The FPB is also concerned about planned changes to the capital gains tax system.
Shaune Parsons, managing director of reseller Computer World Wales, said: “Whenever there is a budget announcement it seems as if SMEs are working for the government, but it should really be the other way around.”

Adam Harris, managing director of VAR Bear IT, said: “The government wants to encourage entrepreneurship, so it should relax corporation tax for those that are trying to help.”