Govt must take 'decisive action' to halt unemployment

Date: 30th March 2009

Immediate action must be taken by the government to halt the UK's rising unemployment figures, it has been claimed.

The Federation of Small Businesses (FSB) believes that enterprises are being pounded by a "double whammy" of inconsistent cashflow and lack of finance, which is exacerbating the country's employment situation.

A recent poll by the group revealed that one third of small firms also found banks to be less helpful now than before the economic crisis began.

John Wright, national chairman of the FSB, commented: "The government must take decisive action to inject life into the economy and resolve the big problems faced by small businesses.

"Tackling rising unemployment is also going to be vital."

Mr Wright added that rising personal taxation allowance to £10,000 would also help to "put money back into the pockets" of employees and employers alike.

Last week, the British Chambers of Commerce claimed that the government could no longer justify a rise in corporation tax after retail sales stagnated in February.