No surprises needed for business

With only hours to go before the election, accountants Ernst and Young has called on the next Government to consider the needs of businesses before setting the strategy for the next five years.

Aidan O'Carroll, National Head of Tax, said: "Surprises are the last thing that businesses need so, whatever the outcome of the election, the next Government must recognise the importance of consistency.

"Businesses are already suffering a period of uncertainty over a number of complex and controversial provisions that were omitted from the Finance Act when it received Royal Assent on 7 April. There is a real danger that the Government will see this as a mopping up exercise and implement those provisions without proper consideration.

"It is imperative that further active consultation with businesses and their advisors is undertaken to ensure that these measures will actually work. The cost of neglecting to do this could well be a tax regime that penalises UK businesses together with the associated risk that international competitiveness will suffer as a result.

"UK businesses need a tax regime that is clear and straightforward. It would be a mistake for any Chancellor to develop any form of strategy for Government without taking the long-term needs of business into account.

"The logic of helping businesses is clear. If business is flourishing, tax revenues improve, the economy is healthy and employment increases - something that any Government would welcome."