Small businesses should not suffer from spending cuts, FPB says

The Government should resist any temptation to cut spending on small businesses, the Forum of Private Business (FPB) has said.

With public sector borrowing for 2009 forecast at £185 billion, it is likely the Government will oversee significant public spending cuts in order to make up the deficit. However, the FPB has prepared a ‘responsible growth' proposal that encourages the Government to support existing business schemes in the face of spending cuts.

Amongst the schemes referenced in the FPB's proposal are the Enterprise Finance Guarantee (EFG) and Trade Credit Insurance (TCI) top-up programmes. Both were set up to boost the resources of small businesses during the economic downturn, but the FPB is concerned that business growth could be seriously hindered should such schemes be scrapped.

Matt Goodman, Policy Representative at the FPB, commented:

"Despite recent suggestions that the economy is heading out of the woods, it is clear there is still a difficult road ahead. Government cuts should not include those programmes that are making a real difference for struggling firms.

"The next 18 months will be crucial. As the main drivers of growth, small businesses need to be placed at the heart of plans for economic recovery so they can make the most of future opportunities."

30/10/09