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UK Businesses: strip out inefficiencies in public services before targeting high earners

Sage Omnibus of nationwide businesses suggests Government cost cutting key to winning votes

Newcastle-Upon-Tyne, UK – 9th December, 2009: There is a much stronger appetite for cost cutting by the Government than for raising the taxes on high earners, according to the latest Sage Omnibus – from the business software and services provider.  As Alistair Darling prepares to unveil his Pre Budget Report, the latest Sage Omnibus suggests that he would do well to focus on reducing inefficiencies within public services rather than penalising success within British businesses.

The gauge of business opinion, which is drawn from Sage’s 780,000-strong community of UK businesses, investigated how businesses felt the Government should tackle the growing deficit.  According to the Sage Omnibus, an overwhelming majority (58.5%) would prefer the Government to focus on making public service delivery more efficient rather than targeting the income of high earners (22.7%), reducing spending on key services such as education or healthcare (2.9%), increasing VAT to 20% (1.8%) or increasing corporation tax (0.5%).

“It is those businesses that have been able to improve efficiencies that have survived and flourished through the tough economic environment,” comments Paul Stobart, Managing Director at Sage UK.  “Rather than penalise those responsible for business success, many would prefer to see the Government follow their lead.  It is vital that success is properly rewarded – not only to protect the UK’s talent pool but also to motivate and attract the entrepreneurs and business leaders of tomorrow’s global economy.”

According to the Sage Omnibus, 57.2% of businesses thought that a rise of VAT to 20% would have a negative impact on their business.  The response suggests that the Government would be wise to hold off on additional VAT rises until after the election.

The Sage Omnibus is based upon over 2,000 responses from businesses around the country.  With over 780,000 UK business customers, Sage is the voice of British business.

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