SMEs demand tax cuts amid financial crisis

Small businesses are placing increasing pressure on the government to cut taxes at next week's Pre-Budget statement.

According to nebusiness.co.uk, firms in the north-east of England are becoming increasingly agitated with the costs they are facing amid a poor fiscal environment.

Even though small enterprises in the region are vocal in their need for supportive economic measures, some also realise that any action taken now may have repercussions in the future.

David Nicholson, managing director of the haulage company Nicholsons Transport, told nebusiness.co.uk: "If I had a choice, I'd cut VAT permanently. We're living for now - which is great - but with government borrowing going up, it's likely we'll have to pay it all back later."

Chancellor Alistair Darling will address parliament on Monday (24 November) when he gives his annual Pre-Budget speech.

Earlier this week, the Trades Union Congress reiterated its demand for tax cuts to be announced in the near future.