Keeping it simple – giving entrepreneurs what they need

Chancellor Gordon Brown has already told us that next week's (December 2) Pre-Budget Report will be one for enterprise. Ernst & Young look at some measures that would make a real difference to entrepreneurs.

Patrick Stevens of Ernst & Young said: "This is not a complicated issue. Entrepreneurs don't need clever schemes or initiatives. A few straightforward measures would significantly improve the position of entrepreneurs."

He suggests:

• Reduction in the stamp duty land tax charge relating to commercial property especially on the creation of leases for normal commercial purposes.
  
• Reduction in the burden of employer national insurance, which is effectively a tax on employment, perhaps to offset cost of the minimum wage.
  
• Rationalisation of the interaction between the substantial shareholdings exemption and inter-group asset transfers.
  
• Extension of the substantial shareholdings exemption to investment company holdings in trading companies.
  
• The introduction of reliefs for investors in small quoted companies.
  
• Widening of research and development relief, particularly with regard to development.
  
• More steps to encourage shareholder culture including simplification and widening of the regime for share schemes.

Patrick Stevens concluded: "If the Chancellor is serious about using this Pre-Budget Report to remove the barriers to enterprise, he should be looking at ways to make the existing regime work for entrepreneurs rather than thinking up new measures to further complicate an already complex regime."