Small firms '5% worse off'

MANY small companies are almost 5 per cent worse off than a year ago because of the rising cost of running a business, according to a report yesterday.

Smaller firms have furthermore been hit by the January rise in VAT, said the report, by More Th>n Business.

Spokesman Mike Bowman said: "The reintroduction of higher VAT is happening at a time when markets are flat and small businesses do not have the scope to increase prices to offset the extra cost. The rise could not have come at a worse time for small firms."