SMEs need government assistance, says FSB

It is vital that the UK's small business sector benefits from Chancellor Darling's banking rescue package.

That's the message from the Federation of Small Businesses (FSB), which believes that if small to medium enterprises (SMEs) are to survive the economic crisis, they must be placed at the forefront of the financial sector bail-out.

The FSB issued the call for action in the run-up to the Chancellor's announcement of the £250 billion part-nationalisation plan designed to stimulate the UK economy.

John Wright, chairman of the FSB, said: "This is an ideal opportunity now that the government has a big stake in the banks to enter into a constructive dialogue with them about their… charges regarding small businesses."

In recent months, SMEs have been hit by increasing overdraft repayment rates which have reached as high as 15.8%.

Small businesses have until the end of this month to file their paper self-assessment tax return, or until 31 January 2009 if submitting online.