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News - 22 February 2008
John Wright

Will Chancellor give small businesses a break?

The Federation of Small Businesses (FSB) is urging the Government to lay off small businesses in the 2008 Budget.

In its annual submission to the Treasury on behalf of its 210,000 members the FSB recommends action to curb the proposed fuel rise charge. It is also firmly opposed to the Government's draconian attack on the tax arrangements of family firms.The FSB's 2008 Budget Submission comes at a time when small business confidence in the Government is at its lowest ebb.

The FSB is also reiterating how the Government's approach to the taxation of small businesses remains alarmingly disjointed and inconsistent.

The FSB Budget report covers recommendations on everything from the impact of the closure of postal services to the importance of keeping trade local, which will also be the cause of a mass lobby of small businesses which will be descending on Parliament on 13th March.

The FSB is calling on the Chancellor to implement a series of measures That include:

  • A mandatory approval vote before the implementation of any Business Rate Supplement.
  • Road pricing to be agreed by a local referendum. A full impact assessment and additional research into the effect local road pricing will have on small businesses is essential.

John Wright, FSB National Chairman, said, "The past twelve months have seen small businesses receive a series of harsh body-blows from which they are still trying to recover. There was the increase in small business corporation tax in last April's budget, then there was the CGT fiasco - it cannot be stressed strongly enough just how important small businesses are to the UK economy. It is vital they are given more help to innovate and prosper. More hindrance will only see them, and the UK, shoved further backwards.

"The year has already begun with the threat of a recession which is difficult enough for small businesses to deal with, without having to contend with more obstacles put in the way by the Government. This wilting relationship between small businesses and the Government needs to be reinvigorated and March 12 will announce whether spring is in the air or whether frosty relations continue."


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