FSB: Small businesses blame government inaction over rising costs

Small business owners say that the government is making it more difficult for them to handle rapidly rising costs. In a poll of over 9,000 business owners by the Federation of Small Businesses, nearly 90 percent said that government policy was making already crippling business costs, such as fuel, even worse.

The overall assessment of the government’s performance on small business issues was even more damning, with 96 percent of respondents to the FSB poll saying that they were unhappy with the government’s record.

The FSB is calling for the government to help the UK’s 4.5 million small businesses cope with rising costs by using higher than expected North Sea oil tax revenues to reduce fuel duty.

John Wright, FSB National Chairman, said:

“With the end of a period of relative stability, small business confidence in the government has plummeted in the last couple of years.

“Employment, tax and fuel policies have left many small firms feeling that their concerns are not being taken seriously enough.

“All we see is government consulting big business, with small businesses being left out of the loop. But small businesses produce over half of UK GDP and it is important that their needs are addressed if we are to get through the current economic difficulties.”

ENDS

Notes to editors

1. Of the 9243 small business owners who responded to the question “Do you believe that the Government’s policies to tackle rising costs are making life easier or more difficult for your business?”, 88.5 percent said they were making it a little more difficult or much more difficult, 1.6 percent said they were making it a little easier or much easier and 9.9 percent had no opinion.

2. Of the 9318 small business owners who responded to the question “Are you satisfied that the Government is currently taking the right decisions in the interests of small businesses?”, 96 percent said they were fairly dissatisfied or very dissatisfied, 2.1 percent said they were fairly satisfied or very satisfied and 1.9 percent had no opinion.

3. The FSB is Britain’s biggest business organisation with over 215,000 members. It exists to protect and promote the interests of the self-employed, and all those who run their own business. More information is available at www.fsb.org.uk.

Contacts:

Stephen Alambritis: 020 7592 8112 / 07788 422155
Simon Briault: 020 7592 8128 / 07917 628998

For regional FSB contacts please go to www.fsb.org.uk/regions