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SMEs need 'more government support’

The London Chamber of Commerce (LCCI) has called on the government to provide more assistance to small businesses.

The LCCI represents over 3000 companies in the capital and warned that many small businesses are feeling a knock-on effect due to the difficult economic times being experienced in the City.

"It is tough out there at the moment, particularly in the City, and SMEs could really begin to struggle in the coming weeks as shockwaves are felt further afield," said LCCI president Stephen Greene.

The body has called for the delayed 2p fuel duty rise to be scrapped and for small business corporation tax, due to be increased in 2009-10 to 22% to be cut to 20%.

Mr Greene added, "The government has moved in recent days to shore up our financial institutions, and what we now need are measures to help smaller firms. An obvious first step would be to lower small business corporation tax to 20% so that firms can put more money into investment and avoid lay-offs."

A survey by the body found that 60% of its members expected economic conditions to get worse, while 43% revealed that their cash flow was down from three months previously.

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Post Date: October 16th, 2008