Small businesses are apprehensive about the forthcoming budget from Alistair Darling, fearing it might increase their debt problems by cranking up the tax they have to pay.
Corporation tax was increased in the 2007 budget with small businesses taking the biggest hit and Alliance and Leicester believe it is the smaller companies that will once again feel the pinch after this budget.
Steve Jennings, director of business banking for the group commented, "With economic uncertainty, small businesses are starting to feel the pinch and the Budget is another concern for them".