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Businesses Demand More from Budget
Date Added: Mon April 20 2009
Three quarters of small businesses say the UK government needs to do more to help steer them through the economic downturn.

Only 10% of small businesses believe the budget in April 2009 will include measures that will have a positive impact on their businesses, according to the latest online survey conducted by accounting software provider, Intuit.

Relatively few small businesses have seen or expect to see actual benefits from the initiatives announced in the pre-budget report (PBR) published in November 2008. Only 11% of respondents said that initiatives such as the additional tax relief to businesses making losses have helped their business.

Small businesses said that high bank charges (50%) and late payments (40%) were their biggest concerns and called on government to introduce tighter control over bank charges. Nearly half of respondents would also like to see a reduction in the employers' National Insurance contribution rate.

Intuit compliance analyst Diana Flier said: "Small businesses face a number of challenges in the present downturn. They are being squeezed by larger companies extending credit terms while the government is clearly failing to help their situation.

"In such a tough economic environment, small businesses want to manage their costs more efficiently, which would explain why the reduction of employers' National Insurance contribution rate has come out on top of the wish list. Given the low confidence shown by small businesses in the survey, it is clear the government really needs to do more to help and the Budget presents that opportunity to address their most pressing needs.

"But small businesses can also help themselves by adopting best practices in financial management. This involves being aware of how much money is being spent, tracking VAT and making accurate returns, and identifying potential cash flow problems before they occur. This calls for processes to monitor and track finances, as well as to prepare a cash flow forecast."