THE Federation of Small Businesses in the North-East is warning that Gordon Brown is likely to change the way he taxes small companies.

The changes could come into effect by April. The FSB, which has 3,000 members in the region, is demanding that the Government provides more information and wants to see any plans postponed for a year to allow the Treasury to hear the views of businesses, accountants and tax advisors.

FSB North-East chairman Nick Horn said: "We cannot be sure about what is going to happen, as the Chancellor has so far refused to shed light on the subject, but the suspicion is that small companies will be forced to pay National Insurance on their dividends."