Partner Article

Darling urged not to forget small businesses

As the North East braces itself for today’s Budget, the Chancellor has been urged not to forget the impact small businesses can have on the region’s road to economic recovery.

Alistair Darling will deliver his final Budget before the election later today and is under intense pressure to convince the UK he is tough on reducing the nation’s record deficit, while offering Labour some pre-polling day relief.

In the North East, Simon Hanson, North East Policy Manager of the FSB, has called on Mr. Darling to use this opportunity as a gateway to help small businesses and has put forward a number of suggestions to stimulate the region’s fragile economy.

He said: “The Chancellor must use the Budget to help small businesses in the North East.

“He could issue a complete freeze on National Insurance Contribution (NIC) rises, an immediate reform of the tax system and the cancellation of the planned one per cent rise in corporation tax in 2011.

“These changes will help more small businesses in the North East survive, prosper and grow.”

Mr. Darling yesterday said there will be no pre-election give-aways, and instead promised a “sensible, workmanlike” financial package that can trigger an economic recovery.

There has been speculation that Mr. Darling will use what limited room for manoeuvre he has to provide assistance to the young unemployed who have been hit hard by the recession.

Meanwhile, the FSB believes the Chancellor could go further by making Small Business Rates Relief automatic for all small businesses across the North East.

Simon Hanson said that at a time when business rates are being re-valued, this could help small businesses save up to £1,200.

He added: “We would like to see more being done on bank lending for small businesses. Our members are still reporting a lack of lending from the banks despite the significant amount of support they have received from the taxpayer.

“The planned public spending slowdown will have a huge impact on the North East and needs to be addressed in a way to ensure that a double dip does not result.”

Log on to bdaily.info throughout the day for live breaking news on the Budget and the reaction from across the North East.

This was posted in Bdaily's Members' News section by Ruth Mitchell .