Gordon Brown has set out a series of new measures aimed at helping small businesses and boosting wealth creation.

In a speech to a Transport and General Workers' Union's conference in Leeds, he reaffirmed the government's commitment to being a friend of entrepreneurs.

Brown gave further details of a tax credits and stamp duty relief designed to boost investment in poorer areas, and a flat rate VAT scheme to cut red tape for smaller businesses.

"I want people in disadvantaged communities to see that the enterprise culture, too often restricted to the elite, is open to them - not least in high unemployment communities where employment for too long has passed them by," said Brown.

He said the government was committed to creating 2000 "enterprise neighbourhoods" across Britain.

"Genuine equality of opportunity means that no matter what your background or area, no matter what your wealth, you should have the chance if you have the talent and initiative to turn your ideas into a successful business - making Britain a more dynamic, vibrant, job-creating, wealth-creating economy."

Draft legislation has been published for the Community Investment Tax Credit, which will provide tax relief for investment in enterprises in disadvantaged areas today for consultation.

Consultations on the stamp duty relief measures are continuing, while the chancellor also said that with the VAT flat rate scheme for firms with a turnover of up to £100,000 could cut costs by up to £1000 a year for 540,000 businesses.

And in a pre-budget interview with the FT on Thursday, Brown signalled he will not water down the government's commitments to competition and enterprise despite growing backbench unease with Labour's closeness to business.

He also rejected backbench criticisms of the government, describing talk of a leadership challenge to Tony Blair as "the froth of politics and barely worth commenting on".

The chancellor told the newspaper there would be no retreating from new Labour's pro-business attitude. He stressed the government's "strong message that the wealth-creating agenda and support for public-private partnerships, the encouragement of small business is central to everything we as a government will do".

"Those people who are suggesting we move backwards from that agenda are not in my view expressing the sentiments the Labour party wants to support - that we have got to combine enterprise and fairness," he said.