'Go easy on small firms,' Darling warned

The Federation of Small Businesses (FSB) has urged the government to go easy on small businesses in the 2008 budget, due to be unveiled on 12 March.

In its annual submission to the Treasury on behalf of its 210,000 members, the FSB recommends action to curb the proposed fuel charge rise. It has joined other business groups including the Freight Transport Association (FTA) and the Forum of Private Business (FPB) in an appeal to freeze the level of duty.

The FSB believes that such a freeze will help protect small businesses that rely on freight transport for delivery from suppliers.

Adding to the strains on small businesses, fuel and fruit prices have been rising markedly in the past year causing inflation to rise to 2.2% in January.

John Wright, FSB National Chairman, said that the threat of a recession this year had already heaped pressure on traders. He cited last April's corporation tax increase and the capital gains tax "fiasco" as extra, unwelcome problems.

"The past twelve months have seen small businesses receive a series of harsh body-blows from which they are still trying to recover," he said.

"It cannot be stressed strongly enough just how important they are to the UK economy."

Small firms employ 58% of the private sector workforce and contribute more than 50% of UK GDP, the FSB said.

Campaigners across the sector are planning a mass demonstration in front of the Houses of Parliament on 13 March.