Pre-Budget Report should include ‘small business’ support

17 November 2008

The government needs to aim specific measures in the pre-Budget Report at helping small firms, a leading business group has argued.

The Forum of Private Business (FPB) has called for better lending, a reduction in regulation and a series of tax reforms in order to help small firms survive what many fear will become a long and deep recession.

In a survey of its members, the FPB found that tax and regulation were seen as the biggest threats to businesses. The top five measures FPB members would like to see included in the 2009 Budget were: the simplifying or limiting health and safety regulations (74 per cent), the reduction of red tape requirements (74 per cent), a cut in Fuel Excise Duty (60 per cent), a reduction of small companies’ corporation tax to 20p (58 per cent) and combining PAYE with National Insurance (41 per cent).

In its pre-Budget Report submission, the FPB also presented the case for automatic enrolment for Small Business Rate Relief, an inflation reprieve for Small Business Rate Relief and continued support for regulatory reform.

Phil Orford, the FPB’s chief executive, said: “The FPB, which has set up an economic downturn member panel in order to gauge the views of its members and communicate them to decision-makers, wants the government to stick by its commitment to monitor the banks’ lending to small businesses.

“We have submitted a petition to the 10 Downing Street website to this end, and, along with tackling the burden of tax and regulation, this forms a central component of our submission to the government’s pre-Budget Report. It is important that the correct measures are put in place to support both small firms and the economy as a whole.”