Press Release

FSB welcomes a Budget speech with no nasty surprises

March 12 2008

The Federation of Small Businesses, FSB, welcomed a Budget speech with few alarms and surprises for the UK’s 4.5 million-strong small business community.

John Wright, FSB National Chairman, said:

“The Treasury’s dithering since the Pre-Budget report and a series of damaging tax rises in the last year have totally undermined the Government’s position with small businesses.

“Alistair Darling’s first Budget is unlikely to make that situation much better, but it is a relief that it will not make it any worse either. Finally it seems we may have an announcement from the Chancellor that doesn’t spring any nasty surprises on small businesses.

“The deferral of plans to change income shifting rules, which would have forced tens of thousands of family businesses to create and maintain a massive amount of extra paperwork on individuals' contributions to their business, is welcome news. The plans should now be abandoned permanently.

“We welcome the freeze on fuel duty until October, but the issue is unlikely to go away. The cost of fuel is damaging small businesses and their customers in every industry and every area of the country.

“Plans to reform regulation, improve access to finance by expanding the small firms loan guarantee scheme, help female entrepreneurs and for a goal to give at least 30 per cent of public sector procurement to small and medium-sized businesses all have our support. These plans will need to be backed up with real action.

“Small businesses are totally opposed to road pricing that does not discriminate between essential business use of the roads and non-essential use. We’re worried that the Chancellor appears to be pushing ahead despite massive opposition.

“The laudable aim to make all new non-domestic buildings zero carbon by 2019 must be handled carefully because it could restrict small businesses’ access to premises.”