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April 01, 2011
Budget won’t help day-to-day running of small firms, poll finds
Almost two thirds of small-business owners think the Budget will have no real impact or a negative effect on their firm, a poll by the Federation of Small Businesses (FSB) has revealed.
The survey of 800 small firms on the 24 March, the day after the Budget, found 45 per cent thought the Budget would have no impact, 16 per cent that it would have a negative effect and 31 per cent a positive impact. The remainder were undecided about the affect the Budget would have.
“The Budget has not hurt small businesses, but it won’t help them grow either,” said FSB national chairman, John Walker. “While we welcome the introduction of Enterprise Zones across parts of the UK, the missing link in the Budget was measures to help all UK businesses to take on staff and grow. This could have been done easily through extending the National Insurance contributions holiday to micro-businesses.”
Of the measures announced in the Budget, the FSB poll found the reduction in corporation and small business tax, the increase in the approved mileage allowance and the freeze on new domestic regulations were the most popular among small firms.
A separate poll of 600 company directors by the Institute of Directors (IoD) found the majority (58 per cent) were more confident about the long-term economic outlook for the economy as a result of the Budget. Just 9 per cent said they were less confident the economy would continue to grow.
“The economic recovery is fragile so it’s good news that business leaders have responded so positively to the Budget,” said IoD chief economist, Graeme Leach. “At a time when confidence could make the difference between recession and recovery, our poll suggests that the Budget has improved the outlook for business investment – the Chancellor has helped steady nerves.”
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