Reported on Fri, 17 Mar 2006

The vast majority of small and medium-sized enterprises (SMEs) in the UK are unhappy with the way Gordon Brown has run the economy, claims a new survey, but a business loan could help entrepreneurs to make significant investments to reinvigorate the market.

Research conducted by the Forum of Private Business (FPB) - which represents over 25,000 small firms - found that 87 per cent of SMEs do not think that the chancellor's economy has been beneficial for smaller businesses.

The FPB is calling on Mr Brown to reverse his earlier increase in the SMEs' National Insurance contributions, with 96 per cent of small firms revealing they find the current levels restrictive.

Additionally, 86 per cent of SMEs think that an increase in the small business relief rate would greatly help their productivity.

Nick Goulding, chief executive of the FPB, has urged the chancellor to "introduce measures that will rid smaller businesses of these obstacles that hinder them and bring in measures that will enhance business performance".

Although he praised Mr Brown in creating a "stable economic environment", Mr Goulding explained that the impending Budget announcement was the ideal opportunity to reinvigorate the SME sector via reducing administrative burdens and promoting investment.

A business loan could allow smaller firms to gain an advantage over other businesses regardless of the outcome of the chancellor's Budget.

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