'More help needed' to create jobs

The building industry is now one sector under real pressure

The Federation of Small Businesses (FSB) is calling on the government to do more to help firms create jobs.

Its call comes as the government is due to announce its own measures on how to help the long-term unemployed, and Gordon Brown is to hold a jobs summit.

The FSB has launched a five-point plan which it says could create up to 400,000 new jobs across the UK.

Measures it is calling for include the promotion of part-time working, simplified regulation and fewer taxes.

It also wants to see more investment in apprenticeships, and greater opportunity for small firms to bid for government contracts.

'Challenging year'

"Our five-point plan is going to be vital to creating and retaining jobs in the small business sector during what is going to be a challenging year, with unemployment on the rise," said FSB chairman John Wright.

"We are calling on the government to help small businesses to continue to invest in recruitment and training, so they can grow stronger and more competitive, creating quality jobs and doing their bit to pull the UK out of recession as quickly as possible."

A spokesman for the Department for Business, Enterprise and Regulatory Reform said the government had already taken action "to provide real help to support SMEs [small and medium-sized enterprises] through the difficult economic conditions".

"That is why we've set out focused help for SMEs across the country - with £1bn worth of targeted tax cuts and a further £2bn in loan guarantees, both outlined in the pre-Budget report, as well as action to encourage the speedy payment of bills."