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FSB responds to the Budget

The Chancellor, Philip Hammond, has acted on key advice and guidance from the Federation of Small Businesses as he delivered a boost to small businesses in his Autumn Budget.

FSB had called for the VAT threshold to be frozen, reforms to the business rate system and an end to the staircase tax - with the Chancellor backing all of them.

 

Mike Cherry, National Chairman at the Federation of Small Businesses (FSB), said: “Overall, this is a business-friendly Budget. The Chancellor’s vision for an inclusive economy includes a set of measures that will boost confidence across the small business community as they face extremely challenging trading conditions.

“1.5 million modest-earning small firms and the self-employed will be relieved that we have seen off a VAT tax grab that would have caused huge economic damage. Instead, FSB is ready to work with the Treasury to simplify an over-complicated tax that on average takes a business a whole week to administer every year.

“We welcome the careful approach to protect diesel van drivers while at the same time addressing air quality. We also welcome the fuel duty freeze, which is vital to so many local businesses for customers, suppliers and staff.



“FSB presented a series of reforms to the Chancellor to make the business rates system fit for the future, and we are delighted to see many taken on board to improve a tax that so badly undermines economic growth. We are particularly proud to see the elimination of the staircase tax, a victory that FSB has campaigned hard to secure over the last few months.

“The economic outlook remains extremely troubled, with high costs of doing business and inflationary pressures hitting confidence and deteriorating productivity and growth. New public sector headline investment will help, to scale-up the British Business Bank by two thirds as well as in research & development, local infrastructure, SME house-building, broadband and training. This must now be followed by practical detail in an ambitious Industrial Strategy next week.”