FSB: Small businesses need access to credit

The Federation of Small Businesses (FSB) has appealed to the newly-appointed chancellor George Osborne to include access to financial credit in his emergency Budget.

Mr Osborne will announce the new emergency Budget on June 22nd.

Sara Lee, spokesperson for the FSB, commented that if business owners have greater access to credit, it will help them recover from the economic crisis.

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

Ms Lee added: "While proposals have been made to increase personal allowances rates, we would not want [the Treasury] to increase taxes further up the scale – as this would contradict the efforts."

However, the spokesperson said that introducing a Small Business Credit Adjudicator, as the Labour party had proposed, would be beneficial to businesses with share certificates.

It is an independent body that gives small businesses a form of redress if banks are not lending enough money.

Written by Morag Lyall

Published on: May 19, 2010

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