2008 Budget will ‘hit small businesses hard’, warns FPB

The 2008 Budget will not grant any favours to small enterprises, according to the Forum of Private Business (FPB).

The lobby group fears that smaller businesses will be forced to pay for the tax breaks it predicts the Government will deal out to big companies.

The warning comes as Chancellor Alistair Darling gears up to deliver his first and much anticipated Budget on 12 March.

‘The FPB is urging the Chancellor to radically rethink many of his ideas, in particular his tax plans, which specifically disadvantage smaller businesses,’ said the FPB’s policy representative, Matt Goodman.

‘Issues such as excessive legislation, unfair competition and the dearth in work-ready, skilled employees leaving education must also be addressed as a matter of priority,’ he added.

The FPB is also calling on the Chancellor to reduce employers’ national insurance contributions (NICs). From 30 October 2008 the current NI exemption for holiday pay will be withdrawn.

The business organisation is also urging the Government to address the ‘unfair’ monopoly of large supermarket chains in the grocery sector and review the proposed increase in fuel prices and introduction of national road pricing schemes.

For all the latest Budget news and information, make sure you visit our website regularly - we will be publishing a comprehensive summary of the announcements.

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