Small business owners to advise the government

The government's Business Council for Britain will begin consulting with small business owners on the issues affecting their companies, the Financial Times reports.

Gordon Brown has been criticised in recent times for under representing small firms on the business council, which was formed last year.

Small business owners advising the body will focus on the obstacles faced by employers, such as taxation, self-assessment tax returns and the other day-to-day concerns of small firms.

The chairman of the council, Mervyn Davies says the "spirit of entrepreneurialism" has increased in recent times, however he acknowledges the administrative burden faced by small companies - and the need for government action.

"We have absolutely got to reduce the regulation and the red tape for small business; that's a very pressing challenge. And we've got to help small businesses grow internationally without building their cost base," he commented.

A recent government study revealed that 14 per cent of small business owners claim regulation is the main "obstacle" to their success.