Limited companies need better access to finance

That is the message the FSB is sending to the chancellor, George Osborne, as he prepares for his emergency Budget on June 22nd.

A spokeswoman from the FSB said that the economic recovery will be speeded up if small businesses have better access to credit facilities. A lot of SMEs want to expand and take on more staff but they can only do this if they can get funding.

Before leaving office, the Labour party had proposed to introduce a Small Business Credit Adjudicator. Small businesses could then appeal to this independent body if they felt the banks were not making enough finance available. The FSB would like to see a similar idea introduced by the Tories.

Before the election, 75% of SMEs said that the government had not done enough to assist them during the downturn.

93% of SMEs and limited company contractors want to see the chancellor lay down a strict plan for cutting the fiscal deficit whilst a third of the FSB's members would like to see the new government reduce red tape and business legislation.

Sara Lee, from the Federation, also pointed out that they would like to see personal income tax allowances increase, they do not want this to be funded by higher taxation as this would be counterproductive.

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