APA urges Government to commit to small firm support

“Support for small businesses must not be sacrificed if and when the government embarks on spending cuts” says Gareth Osborne, Director General of APA, echoing proposals made by the Forum for Private Business (FPB).

With net borrowing set to reach £185 billion by the end of 2009, APA recognises that substantial cutbacks are needed to plug the gap in public finances. In view of this, it has written to the Secretary of State for Business, Innovation & Skills encouraging "responsible growth" ahead of the Chancellor's Pre-Budget Report, which is expected to take place in November.

APA is calling for improvements to existing support schemes, reductions in small firms' corporation tax bills, incentives for micro-businesses recruiting staff and a comprehensive regulatory review.

Gareth said, “Despite recent suggestions that the economy is starting to improve, 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 are crucial. As the main drivers of growth, small businesses; which employ more than 50% of the UK workforce, need to be placed at the heart of plans for economic recovery so they can make the most of future opportunities."

Last week, the Office for National Statistics confirmed that the UK remains in recession for the sixth consecutive quarter.

APA