Decision time

Today, a report by Deloitte suggests that unemployment may rise to nearly 3 million by the end of 2010.

With estimates that 40 businesses are going bust every day, entrepreneurs across the UK are still waiting for the decisive action to ensure that the recession is as shallow as possible.

Two things can be done immediately this week.

First of all, there needs to be an interest rate cut of at least 1 per cent later this week to cut the cost of borrowing and, more importantly, the UK Government should put pressure on the banks to pass this onto small business customers.

Secondly, the Chancellor needs to urgently examine the tax regime for small firms to ensure that, in times of cashflow, they can defer payments to HMRC.

The UK Government should also scrap its increase in corporation tax for small business and return it to the previous 20 per cent level. Indeed, it could look to reduce it even further to ensure that firms keep more of their money at this vital time.

Time is quickly running out and decisive action will be needed immediately to ensure that small firms survive and more jobs are saved.

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