FSB: Emergency Budget must support small firms

Wednesday, May 19th 2010

Smaller businesses must be supported by the new emergency Budget, an expert argues.

Chancellor George Osborne recently revealed this will occur on June 22nd and Sara Lee, spokeswoman for the Federation of Small Businesses (FSB), says it must show leniency.

Taxation on small businesses should be dealt with, as they are struggling through this difficult economic time, she continues.

"Clearly the reversal of the employers' National Insurance contribution increase is something we have lobbied for, as this would cost around 57,000 jobs," Ms Lee adds.

The FSB released results of a poll on May 17th, which showed 93 per cent of small businesses want the government to outline robust plans to cut the UK's Budget deficit.

Ms Lee explains there is a fear that taxes must increase in order to reduce this deficit.

The tax system as a whole could be simplified, which would aid smaller businesses with their cash flow and allow employees to spend their money, she notes.