SMALL business organisations have set out a wish-list of what they want from today’s Pre-Budget Report.
The Federation of Small Businesses is asking the Chancellor Alistair Darling to establish a £1bn fund to help ease cash-flow problems for small firms unable to access finance.
The group, which is chaired by North East businessman John Wright, said such a scheme should be brought in to replace the Small Firms Loans Guarantee Scheme in the short term. It also wants Mr Darling to find new funds for small firms from the European Investment Bank and to make these available through regional development agencies such as One North East. The FSB also warned the Government about the additional burden for the sector if it goes ahead with raising the Small Companies’ Tax Rate from 21% to 22% in April next year.
Mr Wright said: “The UK’s 4.7 million small businesses need more than talk, we need action. Alongside new funds made available in new ways, we also need to see the Government act immediately to reduce the burden of small companies’ taxation.”
The Forum of Private Business (FPB) echoed the call for better lending, reduced regulation and a series of tax reforms to help smaller enterprises to survive the looming recession. Its proposals also include easing VAT payments for small businesses, a reduction in Corporation Tax for the sector to 20%, and automatic enrolment for Small Business Rate Relief.
The organisation has set up an economic downturn panel to find out members’ views and communicate them to the Government. Chief executive Phil Orford said one of the biggest issues remained the lack of funding available from the banks.
He said: “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.”
