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FPB: Budget has failed

Apr 23 2009

The Forum of Private Business (FPB) claims that yesterday's Budget failed to address the biggest concerns of small firms.

According to the organisation, chancellor Alistair Darling's announcement lacks measures which will improve access to finance, boost economic activity and reduce costs facing the UK's small businesses.

Noel Guilford, national chairman of the FPB, comments: 'We are experiencing the worst economic conditions that most business owners have ever seen. We needed a bold strategy for business recovery, which the chancellor has failed to deliver at all levels.'

The group says that the Budget neglects to scrutinise the availability and cost of lending to small enterprises and does not allow enough firms to qualify for protection under the temporary £5 billion credit insurance scheme.

In addition, it avoids measures recommended by the FPB, such as reducing the lower rate of corporation tax, freezing the minimum wage and halting increases in fuel duty, although some capital allowances were doubled in the chancellor's announcement.

The Confederation of British Industry's reaction to the Budget claims it failed in its aim of bringing health to Britain's public finances, saying the 'optimistic' economic forecasts rely too heavily on investors being willing to finance debt.

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