Small firms call for £1bn boost

Small firms are demanding a £1 billion rescue package to be part of the Chancellor's coming Pre-Budget statement.

A recent announcement by the Federation of Small Businesses (FSB) stated that small enterprises need a 'survival fund' to help them through the coming recession.

The FSB also urged the Chancellor to scrap proposed corporation tax rises at his statement next Monday (24 November).

National chairman of the FSB, John Wright, commented: "The government must do everything it can to ensure small firms do not need to turn to alternative and expensive sources of finance."

"A small business survival fund will provide the urgently needed solution."

According to the FSB, corporate rates could rise from 21% to 22% next April, which would heap further pressure on the small business sector.

Last week, the Forum of Private Business revealed that over 40% of firms wanted the government to merge the PAYE and national insurance schemes.