The Small Firms Association has called for a cut in capital gains tax as part of next week’s Budget.

The body said the rate should drop to 10% for entrepreneurs selling businesses, which would bring it in line with Britain’s levy. It also wants the general GCT rate to fall to 20%.

Such a move would boost economic activity, which would in turn generate more revenue for the Exchequer, according to the SFA.

The body also wants action to be taken to make it easier for firms to gain investment, including changes to pension rules that would make it easier for people to use their personal fund for such a purpose.

In terms of personal taxation, the SFA said taxes on workers must fall and an effort should be made to incentivise employment.

It also called for reform of the social welfare system so that it would make sense for people to take up any kind of job.