PRIME Minister Tony Blair has claimed that the government "strongly supports small business, especially in the high-tech sector" and favours "lower taxes still for small business" (Federation of Small Businesses' First Voice magazine, July, 1999).

Sadly, the reality is quite different - the government is trying to force through some little-publicised proposals. These threaten the existence of small businesses in every sector, and stand to hit over 300,000 jobs.

Basically, they claim that providing services through a limited company may be "disguised employment," and thus small businesses should face a steep rise in tax and National Insurance payments.

Many businesspeople would have to complete for vacancies on the 'permanent' payroll of a client, as they would lose their current allowances for equipment and training. Personal pensions would also be affected.

The proposals totally fly in the face of our growing small business culture, where entrepreneurism breeds self-sufficiency and creates jobs. The only reasoning is that all this would bring our employment practices into line with the faltering German economy, and meet European commitments on tax.

The Government is having to ditch plans for other taxes as a result of growing public outcry. Make sure you don't lose your chance to press your MP or trade association, as action is needed now. For a free copy of our 'Jobs At Risk' fact sheet, please send a SAE to me.

PETER GARDNER, New Alliance, PO Box 13199, London SW6 6ZU.

Converted for the new archive on 14 July 2000. Some images and formatting may have been lost in the conversion.