Matt Johnson: What now, Mr Brown?

Oct 3 2007 by Matt Johnson, Liverpool Daily Post

WILL he? Won't he? If he does, when? If he doesn't, why not?

Questions galore for our new Prime Minister, and questions he appears very relaxed about answering.

I suppose it's inevitable that the speculation over whether he will call a snap general election reaches fever pitch at the height of party conference season.

Our foremost political pundits and commentators have gone into overdrive these last few days talking endlessly about whether it's a good or bad time to go to the country.

I guess they are getting their time in now in case it is a snap decision from Number 10 and they find their normal general election lead- in time seriously curtailed.

With the major party conferences being played out against this background, it's not easy to assess how many of the big policy debates and announcements made this week and last have more than pre-election sound bite substance. For businesses big and small, our government's handling of the economy remains critical to good fortune and competitiveness. Chancellor turned Prime Minister Brown will never be short of advice on what to do. Just who he chooses to take notice of remains to be seen.

Among a flurry of advice, pleas, demands and proposals proffered his way this week has been one from the Federation of Small Businesses.

It has warned the Government that any plans for a change in tax law aimed at private equity firms could also damage small firms.

The Prime Minister has recently spoken of his desire to change Government policy on certain parts of the tax regime to ensure that private equity is taxed at an appropriate level.

However, small businesses and entrepreneurs also benefit from relief on capital gains that could be targeted by these changes. Small businesses that together employ 12m people are concerned that any changes proposed in the forthcoming Pre- Budget Report may stifle their ability to grow instead of addressing concerns about private equity.

The Government has targeted small business growth as a key area for the new Department for Business, Enterprise and Regulatory Reform.

It's encouraging that this new Department appears to have identified this as a key growth area and priority. But if tax rules and other changes being considered by HM Treasury are implemented, will this growth and support be achievable?

Time will tell, but surely the Government will have to tread a careful line if it is not to hit small businesses with the fallout from its proposed changes to our tax regimes relating to private equity.

Gordon Brown and his ministerial colleagues talk warmly about British entrepreneurial talent and its contribution to the economy.

Warm words maybe, but we need to see what's behind them before we decide who to vote for in the next election.

* MATT JOHNSON is chairman of Mando