The government should do less to hinder small businesses and more to
help them.

The Federation of Small Businesses (FSB) has urged the government to ‘lay off’ small firms in the forthcoming Budget.

As part of its submission to the Treasury in advance of the Budget, the FSB argued that the planned fuel charge rise be curbed and reiterated its opposition to the proposed new tax regime governing family firms.

The FSB said that the government’s approach to the taxation of small businesses was “disjointed and inconsistent”.

Also covered in a wide-ranging submission were such issues as the effect that the closure of post offices will have on small businesses and the importance of local trading.

Additionally, the FSB has recommended that the government introduces a mandatory approval vote before the implementation of any Business Rate Supplement and that road pricing should be agreed by a local referendum.

John Wright, the FSB’s 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.”

Mr Wright added: “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.”