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The Government has been urged to declare a moratorium on new employment laws for a year and reverse a planned increase in fuel duty to boost small businesses.

The Federation of Small Businesses said the UK's five million smaller firms needed a stable economy to help create jobs in the wake of cuts in the public sector.

In a briefing to MPs in Westminster ahead of the Budget on March 23, the business group said a series of measures were needed, including a national insurance holiday for small companies and help for employers to take on more apprentices.

FSB chairman John Walker said: "The Budget must provide economic stability and look to ways to nurture entrepreneurship and allow small firms to grow in order to create employment opportunities.

"It is clear that the economy is in a precarious position and small firms that lack confidence in the business environment will find growth risky.

"The Government does have policies available to show small firms it is serious about supporting growth, such as extending the national insurance holiday to existing businesses that take on new staff and keeping to its manifesto promise and introducing a fuel duty stabiliser."

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