Category: Finance for Contractors

Professional contractors and others operating small businesses must be aided in the new chancellor's emergency budget, it has been said.

George Osborne should ensure access to credit is available to small and medium-size enterprises (SMEs), said Sara Lee, spokesperson for the Federation of Small Businesses (FSB).

The body has raised fears that the emergency budget, due to take place on June 22nd, will include plans to cut the deficit by increasing taxes.

It is also lobbying for the reversal of the employers' national insurance contribution increase, estimating that this would cost 57,000 jobs.

"Access to financial credit would be of the greatest benefit," Ms Lee said.

"SMEs are looking at cash flow and taking more staff on. In the recovery phase, they will need to borrow to do that."

The coalition government should also simplify the tax system and take steps to improve cash flow, she added.

Posted by Sarah Putt