Businesses 'choked' by budget announcement

Date: 5th May 2009

The government's budgetary measures will do more to hinder businesses than help them, it has been claimed.

Research by the Federation of Small Businesses (FSB) shows that nearly 80 per cent of smaller firms believe the policies announced in April, such as the 2p rise in fuel duty, will negatively impact their organisation.

National policy chairman at the FSB, John Walker, said: "Small businesses are the engine room of the British economy, but they have been choked by the budget."

Specifically, Mr Walker highlighted that the government's decision to increase duties on fuel and alcohol has been particularly troublesome for the sector.

"The chancellor's budget could have gone much further to support small firms," he added.

Meanwhile, a study by the publication Financial Director has shown that an increasing number of UK firms are turning to qualified accountancy experts in a bid to combat the effects of recession.