Lobby groups respond to PM's small business pledges

Business groups have responded to pledges made by Gordon Brown in his speech yesterday to the Labour Party conference.

In an address lasting almost an hour, the prime minister tackled a number of issues relevant to the economy and to small businesses.

Brown announced that, In partnership with the Federation of Small Businesses (FSB), the Government will create 10,000 more graduate internships - a programme hailed by the group as a "victory for small businesses across the country".

He also pledged to raise the national minimum wage every year for the next five years. The rate will rise from £5.73 to £5.80 an hour from 1 October 2009, making it 60% higher than when it was introduced in 1999.

However, the British Chambers of Commerce said that forcing employers to pay staff higher wages and greater National Insurance contributions "will hinder Britain's return to growth".

The Confederation of British Industry also criticised the pledge, saying that by making such promises, the Government is in danger of undermining the Low Pay Commission - the independent body set up to advise on the minimum wage.

The Post Office also received a mention in the speech, with the prime minister saying that he wants the network to play a bigger role in local communities and to provide financial services for small businesses.

The Post Bank Coalition, a group of unions, charities and other groups that want to see the creation of a bank operating via Post Office branches, said that the bank "could and should" be a reality by the end of the year, and urged Gordon Brown "to instruct Whitehall to simply get on with setting up the Post Bank at the People's Post Office".

IMAGE: Gareth Fuller/PA Wire