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Small businesses are optimistic about 2010

January 25th 16:10 Cost Management 

Small British businesses are of the opinion that the UK will not see an economic recovery until the autumn at least, new research has suggested.

According to a new report by technology support service Eclipse Internet, two-thirds of small businesses feel that economic recovery will occur after the summer at the earliest.

The report also revealed that many firms believe the government should be doing more to instigate recovery.

More than half of those asked, said plans to increase the level of employees National Insurance Contribution (NIC) would have a "detrimental" effect on their business.

Increased NICs, as well as the reversion to a 17.5 per cent VAT rate, could see many firms turn to facilities management services in order to cut costs.

Simon Harper, head of marketing at Eclipse Internet, said: "I suppose there is some insight that small businesses are better placed to recover or to perform well when the economy recovers, but they obviously feel a little bit let down by some government policies like National Insurance and VAT.

"The best thing that small businesses can do is to focus on what they do best, which is running their small business."
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