Small businesses 'have lost trust in government'

A majority of small business owners claim they have lost their trust in the government since last year's Budget, it was revealed today.

In a poll conducted by the Federation of Small Businesses (FSB), it emerged that 93 per cent of small business owners had lost confidence in the government over the last 12 months.

The FSB is now calling for planned increases on fuel duty to be scrapped ahead of Wednesday's Budget.

"A series of damaging tax rises and increases in red tape in the last year have totally undermined the government's position with the UK's 4.5 million-strong small business community," FSB national chairman John Wright comments.

Mr Wright claims that changes to income shifting rules, capital gains tax and corporation tax will impact heavily on small firms.

"The chancellor should use this Budget to mend some bridges," he added.

Government plans to increase fuel duty by 2p a litre were initially criticised by the FSB last month - when it claimed that small businesses' finances and their customers would suffer if prices were increased.