Govt urged to support SMEs in Pre-Budget speech

Small businesses are urging the government to show its support for the sector at the upcoming Pre-Budget speech.

Recent research by the Forum for Private Business discovered that almost 60% of small firms want the Chancellor to cut corporation tax to 20p, while 41% are demanding the government simplifies PAYE and national insurance by combining the two.

Matt Hardman, representing the Bacon Factory, a company which slices bacon in Bury, commented: "Given the current economic climate, the government should be doing all it can to help… small businesses, which are the mainstay of the economy."

Mr Hardman added that a reduction in corporation tax would not only provide a boost to smaller firms, but would also improve the economic situation.

The FPB has also argued for the Cash Accounting Scheme - which allows deferral of VAT payments - to benefit more firms.

Chancellor Alistair Darling will make his Pre-Budget speech to parliament at 15:30 GMT on 24 November.