The Forum of Private Business (FPB) has called on chancellor Gordon Brown to implement “real change” for small firms in next week’s Budget.

The FPB met with the Treasury’s Enterprise Team to outline concerns over red tape and regulation, which it claims is hampering the progress of small firms in the UK.

The lobby group said that although the economic outlook was generally good, there were specific measures that Brown could take to make life easier for entrepreneurs.

The FPB’s call for less regulation echoes the submissions of the Confederation of British Industry (CBI) and the Federation of Small Businesses (FSB), who both urged the chancellor to cut back red tape.

However, many analysts predict that business taxes could rise in the Budget as Brown attempts to fill the ‘black hole’ in public spending without increasing borrowing.

Nick Goulding, chief executive of the FPB, said that the chancellor needed to implement real change to assist the small business sector.

“Gordon Brown’s pledge to eliminate unnecessary regulation, and indeed his call for 147 regulations to be repealed in his pre-Budget submission in November, is encouraging news, but more needs to be done.

“Not only would we like to see the back of existing bad regulation, we’d like more care to be taken prior to the implementation of new regulation, more robust Regulatory Impact Assessments and notification that the government intends to ‘think small first’ when considering new legislation,” he said.

Andrew Mowlah, said that although the economy was doing well, some small firms were still struggling.

“We like to see some hard and fast measures introduced in the Budget that will make a real difference to the small firms sector.

“In particular, the chancellor’s pledge to look at red tape and the attendant burdens that it places upon small firms is welcomed, but we really need to put in place positive change that make a difference at ground level.

“We are hopeful that the chancellor grabs what is a real opportunity to deliver policies that will enable small firms to capitalise on the bright economic environment we are currently enjoying,” he said.