Budget must help small businesses resolve big problems

Mar 31 2009 by Karen Dent, The Journal

MEASURES to ensure banks behave properly and solving the problem of rising unemployment should top the Chancellor’s agenda in next month’s Budget, according to the Federation of Small Businesses (FSB).

It has produced a Budget submission for Alistair Darling, calling for automatic rate relief for small firms, an increase in the thresholds before Income Tax and National Insurance contributions are payable and an independent Corporate Mediator to work with banks and their business customers.

A third of FSB members recently surveyed by the organisation said their bank was now less helpful than when the credit crunch began. The organisation said appointing a mediator was a “clear priority” for the Government.

FSB North East chairman, Colin Stratton, said: “The Chancellor is about to announce possibly the most crucial budget in decades and he has got to get it right.

“The Government must take decisive action to inject life into the economy and resolve the big problems faced by small businesses here in the North East – the double whammy of irregular cash flow and a lack of finance from the banks. Our North East SME community is a vital source of employment and turnover, especially during these challenging times. Small businesses are not merely part of the local community, they are the local community.”

The Budget takes place on April 22.