The FPB is backing a proposal to reduce the tax burden on businesses, which was announced by Scotland's First Minister, the Rt Hon Alex Salmond MSP, this week, ahead of the Scottish National Party's (SNP's) first budget in government.

"We are delighted to see the new administration's first budget and spending review honouring its election manifesto," said the FPB's Scottish spokesperson, Jim Gorie. "We look forward to further information on how many micro businesses will be freed from paying these business rates."

In order to boost the Scottish economy, Mr Salmond proposed to reduce or remove rates bills for around 150,000 small business properties across the country.

By April 2008, the Party hopes to introduce a new small-business bonus scheme, to be administered by local authorities. It will reduce rates levied on properties with a Rateable Value (RV) of £15,000 or less, and remove them for properties with RVs of £8,000, by the 2010-11 financial year. In addition, the Scottish Government plans to halve rates for businesses which have RVs of between £8,001 and £10,000 and cut them by a quarter for those valued at between £10,001 and £15,000 by 2010-11.

The FPB believes that the move, which also includes plans to freeze increases in council tax, is a positive step. Now, the eyes of the small-business community in England and Wales are on Prime Minister Gordon Brown and his Chancellor, Alistair Darling, in the hope that they will follow suit.

The FPB also welcomes plans to invest in transport and rural services. However, Mr Gorie warned that a closer financial link with the UK Treasury, as well as the current credit crunch, may curb the SNP's longer-term growth strategy.