There are plenty of reasons to be optimistic if you setting up your own business

Thinking of starting a new business but intimidated by all this talk of austerity and recession? It can indeed be daunting but the

Federation of Small Businesses is striking an optimistic note.

John Walker, National Chairman, Federation of Small Businesses, said that he found much to encourage the small business owner in the recent Chancellor‘s statement.

He said: “The Chancellor has listened to many of our members' concerns and has put forward proposals to address these issues - notably around capital allowances, more encouragement for investors to place funding in small businesses, and cancelling the 3p rise in fuel duty.

"It is an encouraging initiative that those businesses looking to invest in new equipment, machinery and vehicles for their business will get a tenfold increase in the amount they can invest tax free. This will boost investment which is needed to grow the economy and create jobs. This is a step in the right direction and recognition of the important role small firms will play in the recovery.

"It will be a sigh of relief for all small firms that the 3p fuel duty rise has been cancelled. More than eight in ten small firms rely on their vehicle for work. However we note small firms will face an increase in fuel duty in September 2013. Over half of small businesses believe that rising fuel prices are one of the main reasons for increased business costs. Government needs to take the politics out of fuel prices once and for all and look at ways of raising revenue that gives road users greater certainty as to what their overheads will be from one Budget to the next."

"We eagerly await more information on the business bank over the coming weeks. While the bank will help to house all Government finance initiatives, meaning they are better signposted for small firms, it should also improve competition in the sector. For small businesses to grow and help economic recovery, they need better access to finance as it is clear that start-ups and the smallest firms still struggle to access finance they need.”