Letter: Helping businesses.Byline: Cllr Nick Small
I FEAR that Tony Caldeira, the chair of the Liverpool Conservative Business Forum, in his denunciation of the Chancellor's proposals on capital gains tax (Daily Post Letters, February 1) has selective amnesia.
When Margaret Thatcher took office in 1979 Capital Gains Tax (CGT) was 30%. By the time the last Conservative Government left office in 1997, the rate of CGT paid by most entrepreneurs had increased to 40%.
With the latest proposals announced by the Chancellor entrepreneurs will soon pay CGT at 10% on the first Elm of gains they make over their lifetime and 18% on anything else - cuts of 75% and 55% respectively on 1997 rates.
The stable economy created by Gordon Brown as Chancellor and now Prime Minister, matched with unprecedented levels of investment in public infrastructure and skills, have done far, far more to help Liverpool businesses prosper and create jobs than the Tories ever did for the city in the 1980s and early 1990s.
Liverpool's wealth creators will dismiss Tony Caldeira's views as they remember the years of boom and bust In economics, the term boom and bust refers to the movement of an economy through economic cycles. The Boom-Bust economic cycle
According to most economists, an economic boom is typically characterized by an increased level of economic output (GDP), a corresponding , recession and disinvestment Disinvestment
1. The action of an organization or government selling or liquidating an asset or subsidiary. Also known as "divestiture".
2. A reduction in capital expenditure, or the decision of a company not to replenish depleted capital goods.
Cllr Nick Small, Labour Spokesperson on Regeneration, Liverpool City Council
Liverpool City Council is the governing body for the city of Liverpool in Merseyside, England. It consists of 90 councillors, three for each of the city's 30 wards.