Tax cuts may help businesses through the crunch

Those with interests in businesses may be aware of the effects the global banking crisis is having on the economy - and even on their own companies.

As well as taking care of legal issues such as drawing up share contracts, many have been watching movements in parliament to see whether any help for business might be forthcoming from the government.

Charles Davis, an economist at the Centre for Economic and Business Research, believes a tax cut or a reduction in VAT would be beneficial for firms looking for more stability during the troubled financial climate.

"Having businesses ticking over would be a good move and a move appreciated by businesses who are finding it increasingly tough as a recession kicks in," he said.

Reports have suggested that the government could be considering announcing tax cuts in the next pre-Budget report.

Official statistics show that gross domestic product decreased by 0.5 per cent during the third quarter.

Published on: November 11, 2008

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