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FSB Claims Budget is "Crucial"
Date Added: Mon April 20 2009
Ensuring more responsible banking practices and tackling the problem of rising unemployment should be on the Government's agenda in the upcoming Budget according to The Federation of Small Businesses (FSB).

The industry pressure group says automatic rate relief for small firms, an increase in the thresholds before income tax and national insurance contributions are payable and an independent Corporate Mediator to work with banks should be the priorities for Chancellor Alistair Darling.

John Wright, national chairman of the FSB, says the Budget is set to be "possibly the most crucial in decades" and the Chancellor has got to get it right.

He commented: "The Government must take decisive action to inject life into the economy and resolve the big problems faced by small businesses: the double whammy of irregular cash flow and a lack of finance from the banks.

"The FSB has come up with strategic solutions to these problems in calling for the Chancellor's next Budget to include a Corporate Mediator to rebuild the relationship between banks and business; alternative banking solutions such as the Post Bank; and making rate relief automatic – at no extra cost to the Treasury at all." Mr Wright added that tackling rising unemployment is also going to be "vital".

He claimed wage subsidies for employers and employees moving towards short-time working, coupled with raising personal tax thresholds to £10,000, will put money "back into the pockets" of staff and the businesses that hire them.