In a speech to business and union leaders in Leeds today, chancellor Gordon Brown will announce a number of measures aimed at helping small businesses.

Cutting red tape and reducing taxes are among the proposals in a move to regain the support of small businesses following the adoption of such policies as the working families tax credit and paternity leave.

Brown has warned he will not water down the government's commitments to competition and enterprise despite rising backbench dissent over Labour's closeness to business. His comments come in a pre-budget interview with the FT.