Chancellor Gordon Brown today took forward his Pre-Budget Report consultation on a series of measures to support small businesses in deprived areas. His proposals aim to create 2000 enterprise neighbourhoods in the UK

Forum Response: Institute of Directors

Richard Baron, deputy head of policy unit at the Institute of Directors, told ePolitix.com: "We welcome the announcement on a flat rate VAT charge, but would like to see it widened to include as many firms as possible."

Forum Response: Federation of Small Businesses

A spokesperson from the Federation of Small Businesses told ePolitix.com: "Although there is nothing new in the proposals announced by Gordon Brown today, the tax breaks that he "unveiled" will help small firms.

"A survey published this week by Alliance and Leicester revealed that taxation has now overtaken late payment as the issue of greatest concern to small businesses. The administration of VAT causes particular anguish and so the chancellor's proposals for a Flat-Rate scheme for VAT will be well received. So too will the abolition of automatic penalty system for incorrect filing of VAT returns as it currently costs small businesses around £140 million a year in fines and penalties.

"The extension of the stamp duty exemption for commercial property in disadvantaged areas is an intelligent move. It may help to tempt businesses that are currently run from home into premises in run-down city center areas.

"We have made it clear to the chancellor that payroll burdens are our members' main concern and look forward to seeing a hard-hitting report from Patrick Carter next month. Gordon Brown should also use the budget to introduce measures targeted at the self employed in particular."