The next Budget will need to be the “most pro-business ever” to counter the impact of the UK recession, the Federation of Small Businesses (FSB) has warned.
The UK entered into recession for the first time in 11 years after the economy shrunk by 20.4 per cent between the first and second quarter of 2020.
Mike Cherry, national chairman of the small business lobby group, said every policy change now needs to be carefully assessed for its potential to create jobs, spur growth and increase productivity, especially with the impending spectre of Brexit.
“We need the most pro-business, pro-self-employed Budget ever this autumn, one that lowers the costs of innovating and bringing great goods and services to market and eschews tax rises,” he said.
“We’ve had welcome measures to aid business survival and job retention, the Government should now be focussing on measures to aid business and job creation.”
Cherry’s wishlist includes a cut to employer national insurance contributions, infrastructure investment and taking more small firms out of the business rates system.
He also suggested businesses shouldn’t have to repay bounce back loans until they are in profit.
“More than a million firms have now taken on bounce back loans to see them through this incredibly challenging period,” Cherry said.
“They now need a guarantee that they won’t have to start paying them back until they’re making a profit.
“Such an assurance will encourage them to invest and expand today, rather than hoarding cash for fear of what’s coming down the line.”