Yesterday's Budget was a mixed bag for small business interests, according to the Federation of Small Businesses (FSB).

The organisation raised concerns that the benefits of an income tax cut are outweighed by the damage done by a corporation tax increase for small businesses.

"Small businesses employ fifty-eight per cent of the private sector workforce - over twelve million people - and the increase in their tax rate fails to acknowledge their contribution," said national chairperson Carol Undy.

She also claimed that increased road taxes and other environmental measures could harm smaller firms and possibly decrease the amount that they can afford to voluntarily invest in energy efficiency.

On the other hand, Ms Undy commended chancellor Gordon Brown's measures to help guarantee better use of empty commercial premises, as well as the adoption of more risk-based regulations in employment tribunals.

The FSB has more than 205,000 members across Britain.