Challenge to new tax rules

The national network of Chambers of Commerce, including the Shropshire branch, has written to Chancellor of the Exchequer Alistair Darling to express concern over the changes to Capital Gains Tax due to come into effect next March.

Shropshire Chamber of Commerce believes that the proposed changes will damage the spirit of entrepreneurship which is widespread in Shropshire and vital to its economy.

"By cutting the Capital Gains Tax rate to 10 per cent in 1998, the Government sent a clear signal that risk would be rewarded and enterprise encouraged. Across the county we saw an upsurge in companies willing to grasp opportunities and grow their businesses," said Nick Graham, chief executive of Shropshire Chamber of Commerce.

"Shrewsbury and Telford have both been beacons of innovation and enterprise that have been recognised nationally. We do not want to see these economic gains, that ultimately enrich the lives of those living in the county, destroyed to plug a short-term hole in governmental finances," he added.

The decision to publicly challenge the changes to Capital Gains Tax was taken following concern from members of Shropshire Chamber of Commerce.

They were worried that the new regulations were a signal from Government that share and property speculation were considered as valuable as building up a business through innovation and entrepreneurship.

"Our members are alarmed by the message the changes to Capital Gains Tax sends out to those who are working so hard to start and grow their businesses. The recent decision to give relief to certain groups affected is welcome but does not go far enough. The simplest and best option would be to retain the 10 per cent taper relief," said Nick.

"We at the Shropshire Chamber of Commerce will continue to urge the Government to reconsider this decision, in order to continue the support and motivation for Shropshire's business people and entrepreneurs."