THE Government has made significant progress in delivering better access to finance for small businesses but it must develop a strategy for the next decade to ensure momentum is not lost, according to the CBI.

In a survey released by the Small Business Service (SBS) in 2005, it was revealed that the number of businesses unable to raise any finance had fallen from 86,000 to 83,500 in the previous 12 months.

But the CBI is concerned that gaps are starting to emerge in finance provision which must be plugged to build on the achievements of the past few years.

The CBI says the Government must examine how business demand for finance over the coming years can be met. The employer’s organisation is also calling on the Treasury to straighten out a series of anomalies in tax incentives designed to encourage more finance for small companies.

Giving companies tax relief on capital expenditure is an incentive for investment, but firms are only eligible when they become profitable.

The CBI says this does not support new businesses who are investing for growth ahead of achieving profitability. According to the CBI, the Treasury should demonstrate its commitment to enterprise by making capital allowances available to these firms as well.

Malcolm Hyde, CBI South East regional director, said: "The SBS has succeeded in delivering better access to finance for new and growing companies.

"But the Government cannot afford to stand back and admire its work. It must draw up a long-term strategy to build on this strong foundation so more entrepreneurs can turn their business ideas into reality."