Alistair Darling has held a number of meetings with business leaders after his announcement in the Pre-Budget Report (PBR) that there would be a flat rate 18% capital gains tax rate caused controversy.

He is now reported to be planning to offer tax relief on up to £100,000 that small business owners gain when they sell their assets, The Independent reported.

But the Confederation of British Industry (CBI) said that did not go far enough.

A spokesman said:

"If the speculation is true, it is a first helpful step but tackles one and only one of the critical problems that the Chancellor's changes made.

"Nobody must be under any illusion that this will resolve the issue. There are many other businesses and investors who need help as a result of these ill-thought out pre-budget changes."