Increasing taxes for small-to-medium enterprises will not help the UK economy, a business body claimed.
The Federation of Small Businesses commented followed a report from the Centre for Economics and Business Research, which claimed increasing small business taxes would see the UK plunged further into debt.
FSB members stated that raising Corporation Tax would lead to the loss of 100,000 jobs within the small business sector and curb economic output by £4.3 billion.
John Walker, national policy chairman of the FSB, said, "This research by the CEBR shows that taxing small businesses to help reduce the public sector deficit is a dead-end that will instead cost us dearly in jobs and economic growth.
The FSB has long been saying that small businesses are the country's economic drivers and they cannot play their part in pulling the economy out of recession if they are faced with increasing taxes".
