By Claire West

Research carried out by RSM Tenon has revealed that 46% of SME’s agree that Government is listening to business, on account of its U turns since the last Budget.

The RSM Tenon Business Barometer - a quarterly survey carried out by You Gov of senior management in small and medium sized enterprises - also said that

29% of SME’s disagree that Government is listening to business.

There have been at least three U-turns over the budget, the most recent was scrapping ‘charity tax’ proposals that sought to remove tax breaks from wealthy donors to good causes.

The Treasury said it would go ahead with a proposed cap on tax relief — which is to be set at 25% of income or £50,000, whichever is greater — but that it would no longer include donations to charity.

The charity tax climbdown follows U-turns over plans to impose VAT on pasties and static caravans. The VAT on pasties, in particular, resulted from a very vocal protest from the public.

Paul Belsman, National Head of Tax at RSM Tenon says: “I think the Government was taken aback by the strength of feeling over the pasty tax, but they have said all along that they will listen and it is good to see that they are being true to their word.