Small firms 'need more support'

Date: 10th February 2009

Small businesses need more support through the recession, a leading trade organisation has stated.

According to the Federation of Small Businesses (FSB), the government should be doing more to help companies - which could include introducing more taxation breaks.

A study by the organisation condemned one of Westminster's most recent taxation policies, as it showed 97 per cent of businesses believed reducing VAT from 17.5 per cent to 15 per cent had made no positive impact.

National chairman of the FSB, John Wright, said: "Small businesses are doing all they can to survive the recession but they need better support from the government, the banks and the public and private sector.

"The small business sector is a vital source of employment and turnover for the UK economy, especially during these tough times."

Earlier this month, an expert from the company advisory service Business Link claimed that small firms were showing a good degree of resilience in the face of economic downturn.