Small firms occupying serviced offices in Edinburgh may find they have more finance to invest back into the company if proposals to increase the threshold at which they start paying VAT are passed.
Up to 35,000 new jobs could be created if the current rate of £70,000 rises to £90,000 as the £162 million a year this would save might be put towards wages, according to the Federation of Small Businesses (FSB).
In addition, companies - such as those in offices to rent - would be provided with some much needed money, which would help towards a Small Business Programme for Growth.
Commenting on the proposals, national chairman of the FSB John Walker said: "The potential loss to government in VAT receipts by increasing the threshold to £90,000 would be more than outweighed by the VAT rise due to come into force in January."
Earlier this week, Jeremy Hunt, secretary of state for Olympics, Culture, Media and Sport released the Britain's Superfast Broadband Future report, which sets out plans to help businesses flourish by removing barriers concerning hardware costs.
