The Federation of Small Businesses (FSB) has called for the chancellor George Osborne to hold a Budget specifically for small firms.
In these gloomy economic times, access to finance is stifled, the tax system is overcomplicated and job creation is muted, so a small business budget, one where Mr Osborne sets out exactly how the government is helping, could be just what the doctor ordered.
Small businesses naturally want to grow and expand into new markets, but access to long-term capital and finance is often too much of a barrier to overcome. The FSB believes the chancellor needs to put plans in place for a Business Bank.
The state-run group would be able to lend money to small firms, but so far Mr Osborne has failed to set out what role the institution is likely to have and how it will help to stimulate the economy.
Pn top of this, the chancellor is also under pressure to ensure the tax system is simplified. At present, a proposal to allow small firms with turnovers below £77,000 a year to provide cash-based accounts is being considered in Westminster.
But the FSB believes this will only increase compliance and make the system harder for such businesses to manage.
In addition to that, the FSB estimates that extending the National Insurance Holiday to all small business with four staff or less, rather than just start-ups, will help to create around 45,000 new jobs and give the economy a £1.3 billion shot in the arm.
John Walker, national chairman of the FSB, said: “What we need to hear on 20 March is not more small-scale policies which tinker at the edges but measures that will have a tangible effect both immediately and in the long-term.”
“That is why we have asked for a review of enterprise policy, to ensure the right initiatives are in place that really do help small firms start-up and grow.”
Posted by the Secret Businessman