Relief for internet Start Ups, opportunities for the Young

As Budget day approaches, the debate between cutting expenditure versus cutting taxes looks set to overheat.

One thing, regardless of Party ideology, I hope we can all agree on is that at any given time we need government to create conditions that encourage further trade and also new businesses to open. The more businesses that open and succeed, the more taxes the government has at its disposal to maintain public services – some of which in turn could be instrumental in helping many back to work.

At a time when opportunities for the young are an upmost priority for policy makers; I am advocating a tax break (or policy) that could benefit this and other groups with few prospects at present. In talking to business owners and young budding entrepreneurs, both within the British Arab community and outside of it, my suggestion focuses on allowing new internet business start ups to develop before being strangled at conception.

To elaborate, one option the Chancellor could adopt in the coming Budget is to allow a 100% five year tax relief for all internet start ups.

Such a move would not just encourage the unemployed or underemployed young people of Britain to set up their own business, but, in allowing flexibility regarding the location of these new internet start ups, it could also attract entrepreneurs from around the world too. The benefit to government, or the UK economy, could be several fold; job creation (more money put into circulation and fewer on benefits), increase our export of goods, greater eventual tax revenues and a more diverse, reinvigorated business sector.

This simple tax measure would be relatively inexpensive to implement and, as these are yet to be created ventures, the public purse would not be left short. In the long term, making it easier and more affordable for people to start businesses will pay dividends in the future.

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Written by Fadel Takrouri. 

Fadel is a businessman and Chairman of the British Arab Federation (BAF). 

The BAF is an organisation committed to enabling the British Arab community of the UK. We conduct research, hold seminars and events concerning Arab Business, Arab Culture and Arab News.