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FSB makes business plea to George Osborne

George Osborne
George Osborne

The Federation of Small Businesses (FSB) yesterday called on Chancellor George Osborne to use his upcoming Budget to back enterprise, reform business rates and simplify taxes.

In its submission to the Treasury in advance of the 2016 spring Budget statement, FSB urged the chancellor to strengthen small business confidence by “clearly and consistently backing enterprise”.

FSB policy director Mike Cherry said: “In the face of a number of emerging global and domestic pressures, small businesses are looking to the chancellor to back them through what are set to be challenging times ahead.

“Many are struggling to get to grips with the cumulative impact of a series of new tax and regulatory changes that are due to hit their business.

“In this climate, it’s crucial that the chancellor uses the Budget to reassure small firms and boost their confidence so that they invest, create jobs and drive economic growth.

“This means no new major challenges that drive up costs and burdens. In addition, Mr Osborne must deliver on his promises to overhaul the business rates regime and simplify the tax system.”

In Scotland, Deputy First Minister John Swinney gave councils the power to cut business rates from the end of October 2015.

Business rates are set centrally in Scotland and retained locally, but Mr Swinney wanted greater flexibility.

FSB’s recent quarterly survey showed small business confidence cooling in the face of deteriorating global economic headwinds and UK policy decisions affecting them.

The business group said: “Our members are being tested by a series of significant challenges which will drive up costs and increase burdens over the coming months.

“These include the introduction of the National Living Wage in April, pension auto-enrolment and changes to the tax treatment of dividends.”