Matt Hardman, Campaigns Manager for the FPB, said: "In his last Budget, Gordon Brown increased Corporation Tax for smaller businesses. Now we learn that almost a third of big companies paid no Corporation Tax in the 2005–06 financial year, and a further 30% paid less than £10m each. Our members will be outraged by this news. They feel that they are being made to pay more into the tax system because they do not have the capacity of large companies to dramatically reduce their tax burdens."

In a poll of its members last month, the FPB found that 42% of them wanted the new Chancellor to focus on reducing the tax burden for smaller businesses. Ninety one per cent thought they would benefit from a reduction in National Insurance contributions. Five of the top actions that business owners wanted the new Chancellor to take which they believed would be ‘very helpful' to their businesses involved reductions in the tax burden.

Mr Hardman pointed out that there were 4.5m small and medium-sized businesses at the start of 2006. They accounted for half the turnover and nearly 60% of employment. "These revelations are yet another sign that the Government pays too little attention to smaller businesses and too much time cosying up to big business," he said. "Big business has access to Government at levels that smaller companies are denied. The new Business Council set up by Gordon Brown has representatives from big business but no-one to speak up for the small business sector."