The Federation of Small Businesses (FSB) says the £150 cheques, which around 130,000 small enterprises are owed, are "much needed" by those still waiting for them.

HM Revenue & Customs (HMRC) has admitted it may be Christmas before all the cheques are issued.

An FSB spokesman said:

"It is a very different scenario when the HMRC are owed money from small businesses - there is little room for a small business owner to tell the taxman, 'actually, it will take about four months to pay you because we've just been too busy'.

"What we are saying is don't wave a carrot to small businesses if it's going to be left in the air for months. The financial incentive may not be a substantial amount to larger businesses but is vital to smaller ones, and waiting over a quarter of a year for it is too long a time."