Minister demands Pre-Budget tax cuts

Tax cuts and increased borrowing are vital to ensure small businesses survive a recession, according to one government minister.

Chief secretary of the Treasury, Yvette Cooper, has called for major tax cuts to be announced at the coming Pre-Budget statement.

Speaking at the Asset 08 conference, Ms Cooper also pledged to cut civil service spending in Whitehall in a bid to boost the UK's flagging economy.

As reported by the Evening Standard, Ms Cooper said: "The truth is that if we don't act, our economic problems will last longer and run deeper… more people will be out of work for longer and more businesses will struggle or go under."

She added that increased government borrowing could be necessary to inflate the economy, while also arguing that cuts in Whitehall spending could result in around £5 billion in additional savings.

Earlier in November, the Chartered Institute of Taxation called for small business rate relief to make up a significant part of Chancellor Alistair Darling's Pre-Budget statement.