The Federation of Wholesale Distributors (FWD) has voiced concern over some of the implications of the new coalition Government, while welcoming resolution after days of uncertainty over who would form the next Government.
James Bielby, FWD chief executive, said: “FWD members will be interested to see how the coalition Government and the policies which will impact on the wholesale industry develop.
“The ‘emergency budget’ to be announced within 50 days is likely to have big implications for our members. In particular, we are concerned that Capital Gains Tax could be increased significantly for ‘non-business’ assets to close to the 40% higher rate of income tax. Although there could be exemptions for profits related to business, this could add further cost and bureaucracy to our members’ businesses.
“We welcome the proposed reversal of the £3bn rise in employers’ National Insurance and welcome the suggestion that there will be discussions around how to extend the loans made available to small business.
“We will await news on the new Government’s policies to crack down on alcohol fraud. If they are looking to increase their tax revenue and tackling the deficit, alcohol fraud would be one of the best places to start.
“Our members would also be very concerned to see any substantial increases in VAT which would serve to choke off consumer spending at a time when it is needed most.”
Source: FWD
