| FSB reaction to the Chancellor's 2009 Budget |
The Federation of Small
Businesses (FSB) today
warned that the Chancellor's
budget largely ignored the
small businesses that are at
the heart of job creation and
economic recovery.
Cautiously welcoming the
Chancellor's focus on jobs in
the Budget, the FSB reminded
Alistair Darling that small
businesses must not be forgotten
if jobs are to be protected.
Small firms are the economy's
job-creators, the FSB said, and
will be at the heart of creating
Businesses (FSB) today
warned that the Chancellor's
budget largely ignored the
small businesses that are at
the heart of job creation and
economic recovery.
Cautiously welcoming the
Chancellor's focus on jobs in
the Budget, the FSB reminded
Alistair Darling that small
businesses must not be forgotten
if jobs are to be protected.
Small firms are the economy's
job-creators, the FSB said, and
will be at the heart of creating
Darling told "Small
businesses must not
be forgotten if jobs
are to be protected."
businesses must not
be forgotten if jobs
are to be protected."
John Wright, Chairman of The
Federation of Small Businesses
and (inset) Alistair Darling
Federation of Small Businesses
and (inset) Alistair Darling
the lion's share of jobs under the Chancellor's £250m boost for job
programmes and its new scheme to target under-25s. Employers in the
small and medium sector are quick to create jobs, taking advantage of
opportunities and incentives.
Cash continues to be king for small firms and the Government's action
to set up a trade credit insurance scheme is welcomed as an
indication that it is listening to FSB lobbying. However, the
programmes and its new scheme to target under-25s. Employers in the
small and medium sector are quick to create jobs, taking advantage of
opportunities and incentives.
Cash continues to be king for small firms and the Government's action
to set up a trade credit insurance scheme is welcomed as an
indication that it is listening to FSB lobbying. However, the
Government should have gone far further to tackle late payments to small firms by giving Companies House the
necessary clout to use powers within the Companies Act to name, shame and fine companies which fail to pay
on time.
The FSB was disappointed the Government failed to announce automatic rate relief for small firms. Around
£400m has already been allocated by the Treasury to give relief to those firms which are eligible, but the
Chancellor missed the opportunity to give those firms the immediate financial boost they need at this time.
The FSB also welcomed moves to bring reform to the banking industry, but wanted to see an independent
corporate mediator put in place to facilitate dialogue between the banks and small businesses. John Wright, FSB
National Chairman, said, "In what has been the most crucial budget in decades, the FSB is disappointed that
small businesses have been largely ignored.
"We welcome moves to focus on jobs and job creation for young people, but we are very disappointed that this
budget will do nothing for those firms which are doing their best to hold on to their valued employees. A
Government funded wage subsidy for short-time working would have been a real help but was totally ignored.
Small firms will also be disappointed not to have received the benefit of automatic rate relief. This will have
boosted small businesses to the tune of £400m.
"With a quarter of business failures due to late payment and around £38,000 owed to small businesses at any one
time, Companies House should have been given more powers to name, shame and fine companies which fail to
pay on time. The Government has missed an opportunity to save thousands of businesses and the jobs they
create. We welcome the fact that Capital Allowances for firms investing more than £50,000 will double to 40 per
cent.
"Small firms will be sorely disappointed with the 2p rise in fuel duty from September which is just another tax at a
difficult time."
necessary clout to use powers within the Companies Act to name, shame and fine companies which fail to pay
on time.
The FSB was disappointed the Government failed to announce automatic rate relief for small firms. Around
£400m has already been allocated by the Treasury to give relief to those firms which are eligible, but the
Chancellor missed the opportunity to give those firms the immediate financial boost they need at this time.
The FSB also welcomed moves to bring reform to the banking industry, but wanted to see an independent
corporate mediator put in place to facilitate dialogue between the banks and small businesses. John Wright, FSB
National Chairman, said, "In what has been the most crucial budget in decades, the FSB is disappointed that
small businesses have been largely ignored.
"We welcome moves to focus on jobs and job creation for young people, but we are very disappointed that this
budget will do nothing for those firms which are doing their best to hold on to their valued employees. A
Government funded wage subsidy for short-time working would have been a real help but was totally ignored.
Small firms will also be disappointed not to have received the benefit of automatic rate relief. This will have
boosted small businesses to the tune of £400m.
"With a quarter of business failures due to late payment and around £38,000 owed to small businesses at any one
time, Companies House should have been given more powers to name, shame and fine companies which fail to
pay on time. The Government has missed an opportunity to save thousands of businesses and the jobs they
create. We welcome the fact that Capital Allowances for firms investing more than £50,000 will double to 40 per
cent.
"Small firms will be sorely disappointed with the 2p rise in fuel duty from September which is just another tax at a
difficult time."
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