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Budget for growth did no harm, but won’t boost small businesses

George Osborne’s budget for growth did no harm, but wont boost small businesses, according to a survey.

A snap poll of more than 800 members of the Federation of Small Businesses (FSB) has shown that the Budget will have no real impact on the day-to-day running of their business.

The poll, which ran on 24 March, the day after the Budget, asked members what impact the Budget would have on their firm.

Four in 10 (42%) members said that they would be no worse off – but crucially no better off

John Walker, national chairman, Federation of Small Businesses, said: “The Budget was pro-business and we are pleased that the Government has listened to some of our concerns and has extended small business rate relief and scrapped the planned 1p rise in fuel duty and the escalator.

“But, as the results from the poll show, the Budget has not hurt small businesses, but it won’t help them to grow either.”

The reduction in Corporation Tax (50%), the increase in the Approved Mileage Allowance (40%) and the freeze on new domestic regulations (37%) were among the announcements that would have the most positive impact on member businesses.

A third (39%) of those surveyed believed that the Budget would have a positive impact on the economy, compared to only 18 per cent that believed it would have a negative impact.

He added: “While we welcome the introduction of enterprise zones across parts of the UK, the missing link in the Budget was measures to help all UK businesses to take on staff and grow their business.

“ This could have been done easily through extending the National Insurance Contributions holiday to micro-businesses.“

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