FSB welcomes Small Business Finance Scheme

Date: 25th November 2008

The Federation of Small Businesses (FSB) has responded positively to yesterday's (November 24th) pre-budget report announcement.

In particular, the organisation welcomed the Small Business Finance Scheme, which will make £1 billion in loans available to firms on a temporary basis.

What's more, the FSB pointed to the chancellor's decision to allow business start-ups to offset losses of up to £50,000 over the past three years.

National policy chairman of the FSB, John Walker, said: "The pre-budget report is a sign of the importance of small businesses to the UK economy.

"Many of these measures, such as giving businesses longer time to pay bills and offsetting losses, will give small businesses a welcome breather from the taxman."

He added that the taxation reprieves would let firms focus on sustaining their business and growing the economy in the long run.

The reaction of the Conservatives was in stark contrast; with shadow chancellor George Osborne claiming that the government was working to a "political cycle".