Small and medium sized companies will continue to experience tough times in 2011, according to the latest statement issued by a leading business group.
According to the Forum of Private Business (FPB), smaller firms will face a challenging year ahead as a result of public spending cuts, increased costs and problems with late payment. The Forum has called on the government to fulfil its pledge to cut red tape in the workplace in order to help small businesses to replace the jobs set to be lost in the public sector.
The Forum has also said that a simplification of the tax system would encourage more companies to expand.
FPB chief executive Phil Orford said: "In 2010 Britain crept out of recession, but many small businesses will find the year ahead even more challenging as they try to grow, creating the jobs lost in the public sector and driving economic recovery.
"Removing the barriers to growth created by tax and red tape must be a cornerstone of emerging enterprise policies. We are pushing for the UK's complex tax system to be simplified and complying with regulation to be made more proportionate for small firms.”
The Forum has also announced that it will be launching a ‘Get Britain Trading’ campaign, aimed at improving the fortunes of both its members and the wider small and medium sized enterprise community.
Orford added: "We want the massive contribution small firms make to the economy to be recognised and will urge the government to place their interests and concerns at the heart of its enterprise policies for 2011.”
© Crimson Business Ltd. 2011