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The Association of Independent Financial Advisers has urged the Government to use its Pre Budget Report to provide much needed support for the UK's thousands of small businesses.

The adviser group says that rather than the planned April increase in Corporation Tax for small and medium sized enterprises, the Government should in fact lower the rate. A tax break now could help thousands of self employed business owners who are struggling to find finance during the crunch.

AIFA also wishes to see the business rate review postponed as firms are not well placed to pay higher costs – advisers also worry that the higher rates would just cancel out any tax breaks that self employed small business owners could enjoy.

It is also calling for the establishment of a business support fund to help smaller firms. Right now one of the biggest problems for self employed people is trying to get loans and mortgages for their businesses.

Andrew Strange, policy director at AIFA, says:
"Small and medium sized firms in all sectors have been affected by the financial turbulence. We want the Chancellor to abandon the planned increase in Corporation Tax for SMEs and ideally lower the tax rate. It is also essential that business rates do not increase.

"That is why we have been calling for a fairer deal for small and medium sized businesses. We must make sure that the government intervention in the market provides extra liquidity to small business and is not just used to prop up banks' balance sheets."

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