FSB calls for government to put small firms ‘at the heart of the budget’

IN: Business news

The Federation of Small Businesses (FSB) is urging the government to ensure small businesses form a core part of the next budget.

undefinedIt would like the chancellor to create opportunities for investment, growth and jobs that would help restore confidence to small firms.

As part of it proposals, the FSB has advised the government to extend National Insurance Contributions holiday to all small firms across the country with less than four employees, rather than just start-ups.

Calculations from the organisation suggest this move would generate as many as 45,000 employment opportunities, as well as adding £1.3 billion to the economy.

“With the economy only growing a fraction in 2012, the chancellor must deliver a budget that is unashamedly focused on boosting small business,” said John Walker, national chairman of the FSB.

As such, the FSB also suggested the government should cancel the 3p fuel duty scheduled for September and initiate a full review of fuel prices and motor taxation in a move that would help small firms manage their transport costs. 

Access to finance is another priority for the FSB, which believes a review of enterprise policy would help ensure the right initiatives are in place to enable firms to start-up and grow.

Mr Walker added: “The Business Bank and access to finance have a clear role to play in this, but so too does making it easier to run a business.

“This is why making it easier to find investment relief, simplifying the tax system and making small business rates relief permanent should be the chancellor’s priority.”

Yesterday (March 5th) the latest Markit/CIPS UK Services purchasing managers’ index (PMI) was published.

It showed the fastest rise in services activity in five months, which was aided by the solid expansion of new business.

Markit chief economist Chris Williamson claimed the results of the survey indicate the economy will have grown 0.1 per cent in the first quarter, helping to offset the 0.3 per cent decline witnessed in the final quarter of 2012.

That would serve to help the economy avoid a triple-dip recession and give further confidence to small firms about their growth potential.

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