FSB: Chancellor missed a trick

The "missing link" in the Chancellor's Comprehensive Spending Review is a programme to help small businesses grow.

So says the Federation of Small Businesses (FSB), which has welcomed some parts of the announcement but said more is needed to help small firms.

Among the areas welcomed by the FSB are measures to increase the number of adult apprenticeships by 50%, the move towards a low carbon economy and the commitment to improve the infrastructure of the country, as well as superfast broadband pilots.

But it criticised the lack of a programme to create business growth, which is said would increase the tax base and incentivise small firms to grow and innovate.

In its Programme for Growth manifesto, the FSB is calling for:

* An extension to the National Insurance Contributions holiday to include existing firms with up to four members of staff and provide incentives when they take on three new employees - funded by scrapping the £1 billion Regional Growth Fund

* A cut in the business support budget to £500m and concentrate spending on genuine business support for micro businesses and a fully operational web portal

* A business-led National Mentoring Service to be created through the Institute of Enterprise and Entrepreneurs to match mentors with businesses with backing from the banking industry

FSB national chairman John Walker said: "The small business community continues to have a vital part to play in driving a credible recovery and taking on new members of staff to help tackle unemployment, so it is now vital the Government puts a Small Business Programme for Growth into action immediately.

"As our research shows, small firms are at tipping point and lack the confidence to take on the 500,000 people that will be made redundant as a result of these cuts.

"So it is up to the Government to incentivise the small business community to promote growth and help small firms take on new staff."