An increase in the threshold at which some companies pay VAT could lead to the creation of 35,000 new jobs.
A Centre for Economics and Business Research report commissioned by the Federation of Small Businesses found that raising the current rate from £70,000 to £90,000 could save enterprises £162 million a year.
At a time when the public sector is facing heavy job cuts as a result of the coalition's comprehensive spending review, this money could be used to pay employees' wages.
"If the government is truly committed to a private sector led recovery, then it must implement a Small Business Programme for Growth to allow small firms to grow and invest," stated national chairman of the FSB John Walker.
By doing this, firms will gain access to some greatly needed extra finance, which can be invested back into the enterprise through lower prices or more members of staff.
Earlier this week, Emyr Williams, director of Bytestart.co.uk, said the coalition is right to oppose moves by European Parliament in relation to extending the amount of fully-paid maternity leave to 20 weeks.All articles
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