Firm News

Moore Thompson Clients Expect Better Year Ahead

Small businesses in the Lincolnshire and Cambridgeshire areas have been through a tough time over the past 12 months but are now able to look to the future with a little more confidence, according to local chartered accountants Moore Thompson.

The firm, which has offices in Spalding, Wisbech and Market Deeping, recently surveyed its small and medium-sized business clients across a variety of sectors on their recent experiences and predictions for the future.

Many firms painted a gloomy picture of the economy in 2009 with 31 per cent of respondents saying business had been a little worse than usual during the year, and 19 per cent a lot worse. However, a significant minority did see an improvement, with 25 per cent reporting business had been a little better and eight per cent a lot better, with 17 per cent believing things had stayed about the same.

There was more optimism about the year ahead, although most firms remained cautious with the largest share (36 per cent) predicting no change, 28 per cent a little better and just three per cent a lot better. Another 25 per cent expected business to be a little worse in the year ahead, and eight per cent a lot worse.

There was good news for the new government, with 74 per cent of respondents backing its stance that reducing the deficit should be their first priority. A further 20 per cent thought improving bank lending to businesses should come first while six per cent believed cutting taxes was most important.

Businesses also backed the government’s stance on which taxes should go up, with 47 per cent opting for VAT and 25 per cent Capital Gains Tax – both increased in the recent Emergency Budget. There were some differing views, though, with 14 per cent opting for a rise in Inheritance Tax, eight per cent believing the burden should fall on property taxes and six per cent choosing income tax.

Despite this, only 39 per cent of respondents said the Emergency Budget had been good for business overall, with 19 per cent saying it had been bad for business and the largest share (42 per cent) deciding it made no difference either way.

Moore Thompson managing partner Mark Hildred said: “There is no doubt that the last year or so has been very tough for small and medium-sized businesses, so it is heartening that more businesses now think the worst is behind us.

“However, there are still a lot of firms out there who are experiencing problems and concerns over bank lending and taxation levels show that the government must continue to do all it can to make life easier for small and medium-sized businesses, to help them create jobs and contribute to the economy as they would like.”

For more information, please contact Moore Thompson in Spalding on 01775 711333, in Wisbech on 01945 465767 or in Market Deeping on 01778 380850.

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