The measures are part of a 10-point plan that the CBI claims could be implemented in spite of the constraints imposed by the high level of public borrowing.
Howard Davies, the CBI's director-general, said: 'The Budget must be a Budget for business. To promote employment, it must also be a Budget for small businesses. That is where new jobs will first emerge.'
The CBI's demands include:
allowing smaller companies to write off up to pounds 200,000 of plant and machinery investment in the first year;
lifting the small companies' corporation tax threshold from pounds 250,000 to pounds 400,000, and the top threshold from pounds 1.25m to pounds 2m;
allowing personal equity plans to invest in unquoted shares;
relaxing the VAT regime.
Richard Brucciani, chairman of the CBI's smaller firms council, said there was a need to improve the availability of equity finance to small business because of the impending abolition of the Business Expansion Scheme.Reuse content