Small businesses have been assured that they would receive tax cuts if the Conservative party is elected, it has emerged.

The promise comes after last week's Budget, in which chancellor Gordon Brown raised the corporation tax for small firms from 19 per cent to 22 per cent.

Shadow chancellor George Osborne told the Sunday Times that he opposed the rise, saying: "I think we should have a lower and simpler tax system for small firms."

Larger businesses would also see their corporation tax reduced from 30 per cent to 27 per cent, the Conservative party pledged. The chancellor's Budget reduces this tax to 28 per cent.

The Federation of Small Businesses has also criticised Mr Brown's move, claiming that it "fails to acknowledge [small companies'] contribution" to the economy.

Small firms will see their tax increase by 20 per cent next month, rising to the full increase by 2009.