VAT cut has not worked

The FSB poll of more than 4,000 small businesses showed that over half have seen their trade decrease in the last two months - despite a cut of 2.5% in VAT last November. 97% of small businesses said the VAT cut from 17.5 per cent to 15 per cent, as announced in the Chancellor's Pre-Budget Report in November, has had no impact on their trade at all. John Wright, FSB National Chairman, said: "These startling figures show there is still more to be done by Government and the banks to ensure businesses can survive in this economic climate. Small businesses are doing all they can to survive the recession but they need better support from the Government, the banks, and the public and private sector. "The small business sector is a vital source of employment and turnover for the UK economy, especially during these tough times. But these figures show that there is still an avalanche of stumbling blocks stopping this vital sector from surviving and recovering."