Alistair Darling speaking at the CBI Annual Conference today at 12.30 pm seemed to U-Turn yet again in the proposed CGT changes from April 2008. Previously he had U-turned on the proposed changes in the Pre Budget speech suggesting that a £100,000 retirement relief may be re-introduced.

In his speech he seemed unrepentant at the 80% increase in tax on small businesses selling up however he did say he is "listening" and that would consider views put forward from Industry and the Private Sector. He referred to "twice as many small businesses have been established in the last 10 years" but that "18% Capital Gains Tax is less than half the top UK tax rate" the message to small businesses was in essence expect tax rises.

He talked of long term plans but what of the businesses established in the last 10 years than have been planning for retirement finding with little notice that their retirement fund on the sale of their business has been reduced by 8% at a stroke? How can business and business people plan their finances.

So business people now in the UK are in a period of real uncertainty between now and April next year as to whether to sell or crystalise a disposal to minimise the tax exposure on their business, especially those near retirement.

There was intimation that we may have a further update in three weeks on the issue of the proposed increase in capital gains tax for business people. Asked if Mr Hutton's comment yesterday was true that the increase in CGT was to pay for IHT reductions he failed to answer the question as he was asked if this was "true". Probably wise of Mr Darling to avoid answering this point.

Mr Darling seemed keen on flat rates of tax on the basis of simplicity alone. This came across as his excuse for the proposed flat rate of CGT. What also came across was an impression of not being aware of the facts or indeed the real basis of the proposals and policies being proposed and skirting around the questions asked.

"What increases wealth is more trade" Mr Darling went on to say about the economy generally and business. Mr Darling was not so brave as to say that the increased value of the business would not lead to an 80% increased tax on the sale of that business (while having paid employers NIC, VAT, business taxes etc. all along the way).

So at this moment there is no real sign of any reduction of the proposed 80% increase in the tax on the sale of businesses.