The Federation of Small Businesses (FSB) is urging the Chancellor to match EU funding allocations post-Brexit, while protecting investment reliefs in his Budget next month.

FSB is seeking reassurance that no nation or region will lose out after 2019 as a result of the government's proposed UK Shared Prosperity Fund (UKSPF).

The FSB is calling on the Chancellor to rule out any new business tax increases and maintain investment incentives, including Entrepreneurs' Relief, the Enterprise Investment Scheme (EIS) and the Seed Enterprise Investment Scheme (SEIS).

Mike Cherry, FSB National Chairman, said: "With the Brexit clock ticking, other nations are trying to tempt our businesses to their shores. The Budget marks an opportunity to position the UK as the best place in the world to invest in innovative firms.

"We lag behind the EU when it comes to producing serial entrepreneurs. If we want to catch up, and enhance our international competiveness post-Brexit, we need to see investor incentives protected. Doing so will inject some much-needed stability into a climate dogged by delayed decision-making because of persistent uncertainty.

"If the Chancellor is serious about tackling the staggering disparity in productivity between different areas of the UK, he should replace EU funding according to existing allocations. No region or nation should lose out as a result of Brexit."

With local Growth Hub funding coming to an end in 2018, and no extension to the Local Growth Fund for England planned beyond 2021, small firms are calling for continued support for Local Enterprise Partnerships (LEPs) and Growth Hubs.

They are also highlighting the threat posed by the loss of the European Investment Fund, which committed around €2.8 billion to the UK between 2011 and 2015.

Mike Cherry added: "We're staring into a funding black hole from 2021. LEPs and Growth Hubs, which provide vital support to small firms all over England, need reassurances about the future. Continuation of their work will be integral to boosting productivity after we leave the EU.

"The EIF has proven a vital lifeline for firms struggling to access finance, particularly outside of London and the South East where private investors are less active. The Chancellor must avoid a cherry-picking approach to replacing this growth funding. Doing so threatens to entrench regional access to finance disparities. We need to see small firms supported at all stages of their expansion, alongside increased diversification of finance markets.

"One in five small businesses currently exports. With the right support, we could double that figure. Export vouchers would give aspiring exporters the freedom to invest in the resources they need to start selling overseas, particularly in harder to reach non-EU markets. We can't rely on a weak pound to boost exports forever - we need to encourage more small businesses to look beyond our sluggish domestic market."

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