Credit access must feature in Budget, FSB says

Date: 19th May 2010

The emergency Budget to be unveiled next month must include provisions to improve access to finance for small firms, the Federation of Small Businesses (FSB) has said.

Sara Lee, a spokeswoman for the business group, noted that extending credit access to small enterprises will help speed up the economic recovery.

According to the representative, small firms are now looking to increase staffing levels and expand their businesses.

Borrowing is the only way they can do so, she explained.

The comments come as the new chancellor, George Osborne, draws up an emergency Budget that will lay out financial priorities for the coalition government over the next year.

A report from the FSB published before the general election revealed that a third of the organisation's members wanted a reduction in red tape and legislation related to business.

Ms Lee said: "While proposals have been made to increase personal allowances rates, we would not want them [the Treasury] to increase taxes further up the scale - as this would contradict the efforts."

Posted by Emma Clarke