Tory leader David Cameron has called for tax breaks for small businesses to help them deal with the current economic downturn.

He said small companies should be allowed to defer making tax payments for six months and companies with four or fewer staff should be given a 1% cut in National Insurance payments.

He said: “Britain’s small businesses need our help. We intervened to prevent the beating heart of our economy – the financial system – from collapsing. We’ve got to do the same for its lifeblood.”