The Government has not gone far enough to help small businesses through the financial crisis, according to a Kent boss.

Frazer Thompson, chairman of the Institute of Directors in Kent, and managing director of Chapel Down, the award-winning winemaker, based in Tenterden, called on ministers to do more, including scrapping proposed new employment laws

A package of measures announced earlier this week (21), ahead of the Prime Minister’s confirmation that the UK was entering recession, included a commitment to pay bills promptly within 10 days and to pump £350m into skills training.

Prime Minister Gordon Brown, business secretary Peter Mandelson and skills secretary visited Kent Science Park on Tuesday (21) to promote the package to local business people.

But Mr Thompson says that given the extent of the economic downturn, they do not go remotely far enough.

"The biggest single problem that will face small businesses is cash flow," he said. "And whilst we welcome the Government’s renewed attempt to tackle the problem of late payment to small businesses by public bodies, we regret that the equally large problem of late payment by large companies has been overlooked.

"If the Government wants to make a real difference to small businesses it needs to remove the unwelcome stress that will be caused by the implementation of all its current employment law proposals.

"Plans to expand the right to request flexible working and create a new right to request training would impose significant administrative burdens on small businesses and create uncertainty at the worst possible time. And they are just plain unnecessary.

"Lord Mandelson is right to be looking at whether the Government should proceed with its latest employment law proposals. They make no sense without the current financial crisis, let alone with the maelstrom that surrounds us."

Mr Thompson also urged the Government to look at deferring Vat and duty payments to help cashflow. And he was sceptical about the training commitment. He was not sure the £350m amounted to any new money and was not convinced businesses would welcome it anyway. "A more practical use of the funds was being hoped for by businesses already overwhelmed with training initiatives."