THE Federation of Small Businesses Devon region, which represents some 8,000 members across the county, has given a broad welcome both to Government plans to reduce the national deficit and to the first Queen's Speech of the new administration.

"With 93 per cent of small businesses saying the government must outline how they intend to tackle the deficit the Federation of Small Businesses (FSB) welcomes the clarity that the announcement provides," said David Shephard, Devon Policy chairman.

"Throughout the recession businesses have had to make tough decisions to cut spending and scale back operations and we are pleased that moves to tackle the deficit are coming from Government through pay freezes and spending cuts in the public sector, rather than increased taxes which will hurt business growth.

"While we await further detail on how the £836 million will be cut from the Business Department's budget, we are concerned that it seems plans to introduce a small business credit adjudicator have been shelved.

"Businesses face tough conditions in accessing finance and we urge the Government to outline how they will ensure that businesses get a fair deal from the banks if this scheme is cut."

David says plans to freeze backdated business rates in ports and to increase funding for apprentices are also good news.

The FSB went on to welcome announcements in the Queen's Speech to safeguard jobs and support the economy as well as for investment in high-speed broadband and commitments to ensure a universal postal service and to safeguard the Royal Mail and Post Office network.

"The first Queen's Speech of the new Parliament has some welcome initiatives which allow small firms to grow to help strengthen the recovery," added David.

"Cutting the deficit is of high importance to a large number of small firms and we welcome the introduction of the Office for Budget Responsibility."

Details of the Devon region and local branches available at fsb.org.uk/devon