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A call to scrap the increase in small business corporation tax has been spearheaded by the London Chamber of Commerce.

The LCCI - which represents over 3000 companies in the capital - has warned that many small businesses are feeling the consequences of the economic downturn.

Stephen Greene, president of the LCCI, said: "It is tough out there at the moment, particularly in the City, and SMEs could really begin to struggle in the coming weeks as shock waves are felt further afield.

The body has called for the delayed 2p fuel duty rise to be scrapped and for small business corporation tax, due to be increased in 2009-2010 to 22 per cent to be cut to 20 per cent.

Mr Greene added: "The government has moved in recent days to shore up our financial institutions, and what we now need are measures to help smaller firms."