A new five-point plan is being proposed in a bid to help small businesses affected by the foot-and-mouth crisis.

The Federation of Small Businesses (FSB) has launched the plans following a snap-shot survey it carried out of small businesses, which shows firms believe trade losses will continue during the next 12 months as well as in the immediate future.

The survey found businesses feared losing up to £20,000 over the the next year yet they were not laying staff off in great numbers.

The five-point plan urges the Government to make straight grants available, offer 100 per cent rate relief for businesses with a rateable value of up to £50,000, re-introduce a small employers redundancy rebate scheme, suspend bankruptcy and insolvency laws and bring in an extra bank holiday later in the year to benefit the tourism sector.

Backing the suggestions, Terry Taber, the FSB's Essex regional office, said profits made in the future will cover overheads but not the losses suffered during the crisis.

"That is why businesses expect to lose money over a long period. Small businesses are suffering badly now, but our evidence suggests a full impact has yet to bite.

"Our five-point plan offers those affected vital assistance now and in the future."

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