The FSB says that while it understands that this is an emergency budget for emergency times, it has urged the Chancellor to temper emergency actions with measures that will inspire confidence in the future and allow businesses to innovate, grow and employ.

As an example, the FSB points out that the timing of any VAT increase will be vital. The 2008 reduction in VAT cost the average small business £1,500 in administration. If VAT is to increase, FSB has urged the government to include a “sunset clause” which would allow small firms to plan ahead.

The FSB also argues against a significant increase in Capital Gains Tax” but urges the government to go beyond the Conservative manifesto proposal to cut employer National Insurance contributions and apply this to existing companies as well as to new businesses.