Ahead of the Emergency Budget scheduled for 22nd June, the Federation of Small Businesses has commissioned research which resulted in 93% of small businesses agreeing that the government must deliver robust plans for reducing the huge deficit.
The survey took the opinions of 1,319 of the their members and asked them about their expectations of future Budgets with regards to the recovery of the economy and the promotion of business growth. Around a third of respondent stated they would like to see an increase in personal tax threshold while two thirds believe that business growth would be aided by a reduction in fuel duty.
National Chairman of the Federation of Small Businesses, John Walker, commented: We welcome the news that the Government will set out a clear spending review in the coming weeks ahead of the Budget as this is an issue of concern to many small business owners. We also welcome the creation of the Office for Budget Responsibility. Small firms are keen to see how the Government will tackle the deficit while also ensuring businesses can grow, further strengthening economic recovery. We urge the Government not to place further taxation burdens on small businesses at a time when the recovery is fragile and would like to see measures announced which will promote business growth and encourage employment.
Meanwhile around 40% said that businesses would benefit from an extension to the Time to Pay scheme. Another popular option was the introduction of legislation to force larger businesses to pay invoices within a 30-day period.
Mr Walker concluded: “There are still underlying issues between the banks and small businesses and access to finance and credit. The Government must put pressure on the banks to lend to small firms so that they can get on with the job in hand.”