October 06, 2010
Three quarters of small businesses think the coalition should cut spending to tackle the public deficit, new figures from the Federation of Small Businesses (FSB) ‘Voice of Small Business' survey show.
The FSB will tell the Conservative Party Conference that 74% of small businesses support cuts in public spending, while 60% said they are willing to accept cuts in the wake of Britain’s crippling public sector deficit.
The FSB also believes savings could be made with business support structures and access to finance systems. The emphasis on access to finance should be on ensuring the banks meet small business demand, said the FSB.
To aid the government in its quest for economic stability, the FSB claims the following must take place:
- Extend the National Insurance Contributions holiday to existing firms: provide incentives for businesses with zero to four members of staff when they take on three more employees;
- Provide fast and reliable broadband: help small firms grow their business online which could create 600,000 new jobs;
- Promote small business services at the Job Centre: ensure small businesses are aware of and use the Small Business Recruitment Service; and
- Increase the VAT threshold: raising the VAT threshold to £90,000 could save business up to £162 million per year.
“We have heard time and time again that small businesses are the drivers of the UK economy and the job creators of the country. And the 4.8 million small firms truly are - employing more than half of the private sector workforce,” commented John Walker, FSB National Chairman.
"We all know we are living in an age of austerity which will affect us all and that tough decisions must be made in the Comprehensive Spending Review, but we will be telling the Conservative Party Conference that small firms need the right measures in place so they can fulfil their role as innovators and job creators.
“Small businesses are the sector to aid recovery and must step up - but so must the government."
