Small business groups have welcomed moves made by the Chancellorin yesterday’s pre-budget report to ease life for SMEs.
Alistair Darling announced a £1bn small business loan fund aswell as deferring next year's rise in corporation tax and allowing small companies to offset losses upto £50,000 over the last three years.
In response the Federation of Small Businesses (FSB) said thatthe government had implemented measures it had been calling for and it expectedthe pre-budget report to be good for its members.
“Many ofthese measures, such as giving businesses longer time to pay bills andoffsetting losses, will give small businesses a welcome breather from thetaxman and allow them to concentrate on sustaining their business, supportingtheir staff and growing the economy in the long term,” said John Walker, FSB NationalPolicy Chairman.
There was a mixed response from the Forum of Private Business (FPB), which saidthat there should be greater access to funds for SMEs but the temporary nature ofthe relief came in for criticism.
"These schemes are welcome, provided that the banks make themaccessible, and that small businesses are proactive in seeking them out,” saidthe FPB's Chief Executive, Phil Orford.
"However, we are disappointed that these initiatives are both temporaryand short-term, and that much of what has been given today will be clawed backpost 2011. In addition to short-term liquidity solutions, we were hoping formedium and long-term policies to provide more certainty for business owners,”he added.