Small businesses have welcomed the measures announced in the pre-Budget report designed to help them cope with the economic downturn.

Chancellor Alistair Darling unveiled a range of proposals, including a deferral of the planned increase in corporation tax, the ability to spread payment of tax bills and greater access to finance following the creation of £1bn fund for small firms.

Small companies will also be able to offset losses of up to £50,000 over the past three years, while there will be a temporary increase in the threshold for empty property relief.

"Many of these measures, such as giving businesses longer time to pay bills and offsetting losses, will give small businesses a welcome breather from the taxman and allow them to concentrate on sustaining their business, supporting their staff and growing the economy in the long term," said John Walker, national policy chairman at the Federation of Small Businesses.