The Federation's positive reaction was welcomed by Pendle MP, Gordon Prentice.

Speaking from Westminster, the MP said: "The Chancellor had a difficult hand but he played it with some skill. We are in the grip of a fierce global recession caused by an under-regulated finance sector with a worldwide reach. It started in America and the contagion spread around the world."

"I am pleased small business, which are so vital to our economy, have recognised the Government has moved to meet many of their concerns."

"They have concerns about jobs. But we all have. Unemployment is lower here than in our major competitor countries."

Note to Editors:

The FSB says: "Changes to the rates system - increasing the rate relief threshold for business premises with rateable values up to £6000 will increase the number of businesses not paying business rates to 345,000 and means rates will be reduced for 500,000 businesses in total. Business rates are the third highest outlay for small businesses after rents and wages, and the only tax that must be paid regardless of a business’s profitability. These changes will benefit two-thirds of high street shops and represent a victory for our Keep Trade Local campaign.

"Procurement targets - increasing targets by 15 per cent for public sector contracts to be awarded to SMEs could benefit small businesses. It is important though, that micro businesses, which employ less than 10 members of staff, are also considered part of the target. 95 percent of all businesses are micro. It is important that this target is not a one off and that is also applied at local levels.

"Access to finance and the credit adjudicator – increasing lending figures from £39 billion to £94 billion could improve a small businesses cash flow providing the terms and cost of finance are reasonable. The current £39 billion target has not been achieved and according to the FSB-ICM ‘Voice of Small Business’ Annual Survey this is because the cost of finance has increased (32% of small businesses have seen the cost of finance increase).

"The introduction of the credit adjudicator should give small businesses the opportunity to appeal against a decision by the bank to reject a loan application – more competition for high street clearers is also welcome and is something the FSB has long been calling for.

"More time to pay tax bills – this commitment will benefit small businesses by allowing them extra time to survive and grow.

"Entrepreneurs Relief from Capital Gains Tax – this was introduced following calls by the FSB. Proposals to increase the threshold to £2 million for capital gains tax (from £1 million) should see serial entrepreneurships rise.

"Prompt Payments – Government commitments to paying 80 per cent of its invoices within five days is a welcome measure. To make a real difference to small businesses these payment terms should continue down the supply chain."