Menu

News Article

Sector Analysis

FSB welcomes all party support for small businesses

By CreditMan Tuesday, October 21, 2008

FSB welcomes all party support for small businesses

The Federation of Small Businesses (FSB) has today welcomed both the Government and the Opposition's proposals to help small businesses through the credit crunch.

Commenting on the Leader of the Opposition's demands for a six month VAT holiday for small firms, a postponement in the increase of the small companies tax rate, and a 1p cut in National Insurance Contributions (NICs) for firms with under four employees,

FSB National Chairman, John Wright, said:

“A VAT holiday would provide welcome relief to the UK's 4.7 million small businesses who are struggling with rising costs. We know that 90 per cent of all employers have fewer than four members of staff, so the plans to cut their NICs contributions will help shore up vital funds.”

The FSB was also pleased to see the Government's pledge to settle their invoices with small businesses within 10 days and to postpone extensions on flexible working. This postponement announced by the Business Secretary Lord Mandelson will be particularly welcoming to small employers as they grapple with red tape.

FSB National Chairman, John Wright, added,

“Increased regulation can impact the growth potential of small businesses so a postponement of changes to flexible working will provide respite for businesses.

“We are also pleased with the Government's proposal to pay bills to small businesses within ten days. To this end we have also written to local authorities urging them to undertake similar measures and to pay their small business suppliers as early as possible.”