Alistair Darling's Pre-Budget report 2007

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Mr Darling has lost an opportunity to win friends among small businesses, says a leading businesswoman.

Although Fiona Price welcomed the 2p cut in corporation tax to 28p by next year, she believes the Chancellor should have gone further.

"He has not listened to the voice of the small business. The Small Business Council that I served on for three years has been scrapped."

"He only listens to big business and they are the ones more likely to benefit most from the cut in corporation tax because they make bigger profits."

She also believes Mr Darling missed a golden opportunity to given budding entrepreneurs the encouragement to set up their own business.

Fiona, who in the Eighties launched Fiona Price Associates, the first financial services company aimed at women, believes the Chancellor should have rewarded the small businessman with some much-needed tax breaks.

She said: "These are especially important if you reinvest in your business."

"It probably takes three to five years for people starting up on their own to earn more than if they stayed employed - and sometimes never."

"You pay income tax and corporation tax as an owner manager, not to mention VAT. You should get relief from corporation tax on retained profits used for re-investment or to even out cashflow where otherwise you have to pay to borrow."

Fiona also called on the Chancellor to simplify taxation for small business.

She said students are being encouraged to set up in business, but at the same time they are being penalised by the burden of student debt.

Fiona, 47, said: "They should be able to offset student loan carrying against profits as an incentive, which act as a huge barrier to taking on more risk."

"How else are the supposed to pick up the entrepreneurial cudgels?"

Fiona, who has set up Diva-Biz, a video-based website to encourage women to set up in business, said: "Banks should be encouraged to offer genuine free banking to start-ups and interest-free periods to startups for the first year to 18 months - so do give it but it's rare."