The leaders of the Confederation of British Industry (CBI), the British Chambers of Commerce (BCC), the Institute of Directors (IoD) and the Federation of Small Businesses (FSB) are following up their joint letter with a meeting with Chancellor Alistair Darling, The Guardian reported.

The meeting comes as the FSB criticised the Government's understanding of the taxation needs of small businesses, in its response to a consultation on changes proposed in the Budget.

An FSB spokesman said:

"Small businesses continue to feel let down by the Government with regard to tax. Increasing the corporation tax on small businesses by three percentage points, while reducing it for large firms, was a kick in the teeth.

"Complicated tax allowances, with their bureaucratic processes and unrealistic spending thresholds have in no way made up for that tax hike. A local hairdresser is not going to spend £50,000 per year on hairdryers but will be subject to higher taxes."