Commenting on the news that GDP figures fell by 0.5 per cent in the fourth quarter of 2010, raising fears of a double dip recession John Walker, National Chairman, Federation of Small Businesses, said:
“So far 2011 has been nothing but bad news, with the rise in VAT and fuel duty, high unemployment and now growth going back into negative territory. This is in line with the FSB ‘Voice of Small Business’ Index report which showed that small business confidence fell to its lowest level in the final quarter of 2010. It is clear that the Government can’t just cut its way back to growth and that 2011 is only going to get tougher as the impact of the VAT rise and the increase in fuel duty kicks in.
“The Coalition Government has been dominated by a relentless focus on cuts. And while other countries have cut VAT, particularly in sensitive areas such as construction, the UK Government has increased it. As a double-dip recession comes ever closer, we need to see the Government look to ways to nurture entrepreneurship and allow small firms to grow, such as extending the National Insurance holiday to existing businesses that take on new staff and keeping to its manifesto promise and introducing a fuel duty stabiliser.”
Sara Lee
Press Officer
Federation of Small Businesses
www.fsb.org.uk
Tel: 020 7592 8113
Mobile: 07595 067068
twitter.com/fsbpress
