'Lukewarm' reception for Brown's pre-budget report

The Federation of Small Businesses (FSB), Northern Ireland’s largest business organisation, has given a lukewarm reaction to the Chancellor’s pre-budget report.

Chancellor Gordon Brown's pre-Budget report, outlined plans to provide more funding for education and defence while increasing fuel and air passenger duties.

FSB finance spokesperson in Northern Ireland, John Hurson, said: “At first glance the Pre-Budget Report has a ‘some you win, some you lose’ feel to it for our members. As in previous years there were some welcome measures in the Chancellor’s speech but there were also parts of the speech that will hit small businesses in Northern Ireland very hard."

He expressed concern over the drive for greener transport stating: “A successful economy depends on being able to move goods, services and people across the country. Increasing aviation and fuel taxes will not help small business to increase productivity. However, we welcome the decision not to re-instate the fuel duty escalator.”

The move to police the minimum wage more effectively was welcomed, but the absence of measures to reduce the complexity of small business taxation was condemned.

“After several years of increased complexity it is very disappointing that there was no signal of a change in direction on the complexity of the tax regime. It has cost small businesses a lot of time and money over recent times to comply with tax form requirements or hire external expertise,” said Mr Hurson.

(SP/CD)