
Small businesses, the lifeblood of the UK economy, are feeling let down by the new Chancellor of the Exchequer, Jeremy Hunt. Hunt recently made a decision to backtrack on tax-cutting measures that were intended to boost growth. This included reversing the planned reduction in corporation tax from 25 to 19 per cent and scrapping the proposed 1.25 percentage point reduction in dividend tax. Unfortunately, many small business owners pay themselves in dividends, so these measures were not well received. While Hunt’s actions were aimed at stabilizing the country’s finances, they have left small firms feeling disappointed.