Small businesses await 2008 Budget

News Article - 12 March 2008
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Small and medium-sized enterprises (SMEs) in Britain will be watching closely today as the chancellor unveils his latest Budget.

Alistair Darling will deliver the 2008 Budget in the form of a speech to the House of Commons today and is expected to include a number of measures in it that will affect smaller firms and their management reporting practices.

The Federation of Small Businesses (FSB) is calling on the chancellor to use the 2008 Budget to mend the government's relationship with small firms. A snap poll by the organisation found that confidence in the government has dipped over the past year for 93 per cent of small business bosses who want policies that will give them a competitive edge.

According to the BBC, the chancellor will announce that he will put a planned 2p increase in fuel duty on April 1st on hold for six months, as fuel prices continue to soar, benefiting the business health of small firms with high transportation costs.

Small businesses have been calling for a freeze on fuel duty and also want Mr Darling to address capital gains tax (CGT), making the system friendlier for small firms, reduce red tape and cut corporation tax for SMEs. SME accounting software can help businesses to keep a closer eye on their finances and adapt to legislative changes.

This year will mark Mr Darling's first Budget as chancellor and experts predict that 2008 will focus on alcohol, cars with high emissions levels, plastic bags and air passenger taxes.

It is unlikely that the government will introduce widespread tax cuts, as Britain faces economic uncertainty and a shortfall in public coffers. A survey from Bank of Scotland Business Banking found that just seven per cent of SMEs in Britain feel that the 2008 Budget will benefit their business growth and productivity.

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