Govt gets Budget warning from FSB

Date: 19th February 2008

The Federation of Small Businesses (FSB) has asked the Treasury to curb proposed tax changes ahead of next month's Budget announcement.

In its annual Budget submission, released today (February 19th), the organisation warns the government that its "disjointed and inconsistent" approach to taxation for the UK's small businesses could have a serious impact on the overall economy.

The FSB is hoping to convince the Treasury to reconsider plans for an increase in fuel rates and has also voiced its opposition to the tightening of 'income shifting' regulations, which it views as an unnecessary attack on family businesses.

John Wright, FSB national chairman, stated: "It cannot be stressed strongly enough just how important small businesses are to the UK economy. It is vital they are given more help to innovate and prosper."

He went on to suggest that the "wilting relationship" between small enterprise and the government could be "reinvigorated" by the inclusion of business-friendly tax reforms in the Budget.

Wednesday March 12th will see Alistair Darling unveil his first Budget as chancellor.