Small businesses demand deficit reduction

The FSB polled the views of 1,319 members and found that two-thirds (66%) of respondents said that a cut in fuel duty would help growth and 36% would like to see an increase in the personal tax threshold.

41% said that the extension to the Time to Pay scheme announced in the last Budget would have a positive impact on business prospects and legislation to force big businesses to pay invoices within 30 days would provide a boost for 46% of respondents.

The Chancellor announced yesterday the creation of an Office for Budget Responsibility, an independent body which will look at the state of public finances. The Government will report how it will make £6 billion in savings over 2010-11 in the next week.

John Walker, national chairman of the FSB said: "Small firms are keen to see how the government will tackle the deficit while also ensuring businesses can grow, further strengthening economic recovery. We urge the government not to place further taxation burdens on small businesses at a time when the recovery is fragile and would like to see measures announced which will promote business growth and encourage employment.

"There are still underlying issues between the banks and small businesses and access to finance and credit. The government must put pressure on the banks to lend to small firms so that they can get on with the job in hand."