AN MP has called for more support to help small businesses struggling to cope with the effects of the credit crunch.

Nigel Evans, MP for the Ribble Valley and Fulwood, has called on the Government to aid small businesses in the uncertain economic climate.

Mr Evans has backed the calls of his party leader, David Cameron, and said there needs to be an effective plan in place to help small businesses survive.

He said:“We need to save our small businesses “Small and Medium-sized Enterprises (SMEs) are the lifeblood of our country’s economy. They employ over 13 million people, but they are often the hardest hit during an economic downturn.

“There are many businesses in East Lancashire who need all the support they can get right now.”

The Ribble Valley MP, who himself owns a convenience store in South Wales, believes there are a range of plans that could provide businesses with the boost they need.

He said: “We would like small businesses to be able to defer their VAT bills for up to six months. So, for example, a business with 50 employees, revenues of £5m and an annual net VAT bill of £350,000 wouldn't have to pay £90,000 to the taxman when the bank has just taken away its overdraft.

“And smaller businesses would benefit too in a similar way.

“Small businesses in East Lancashire do not need the Government’s proposed 2p increase in Corporation Tax – and we’d like to see the Treasury scrap that increase.

“If we want to reduce the likelihood of redundancies, then we need to support small businesses by ensuring their cash flow stays liquid.”