Stirling MP Alyn Smith has written to the Chancellor of the Exchequer to call for a change in how Corporation Tax is assessed to help businesses struggling with costs due to the Covid-19 pandemic.
Mr Smith is calling for 2019/20 and 2020/21 financial years to be combined to account for the loss in revenue over pandemic, whilst spreading out the burden of paying corporation tax.
Mr Smith has visited a range of local businesses since they reopened last month, including Mhor Bread in Callander, to discuss some of the financial challenges that different sectors are facing.
Alyn Smith said:
“Visiting excellent places such as Mhor Bread in Callander, it’s clear to see the efforts that small and medium sized businesses across the areas have put in to open safely after a very difficult lockdown. Whilst we are not out of the woods with this pandemic yet, it is important to focus on economic recovery, and to relieve business from as much of the immediate tax burden as possible during this time.
“Of course a balance needs to be struck as tax revenue is needed to finance vital public services, but so too must the government invest in the economy to support it through what is proving to be a very difficult economic period.
“I hope that the Chancellor will listen to these calls, and consider what measures the Treasury can take to support businesses paying tax.”