George Osborne should create new tax breaks on exporters in a bid to encourage more small businesses to sell their products and services overseas, according to a group representing SMEs.

The Forum of Private Business (FPB) said the chancellor should introduce a scheme like the one providing research and development breaks on corporation tax.

It would deliver tax incentives for exporters by reducing small business tax bills or tax credits paid to businesses by HM Revenue and Customs, said the FPB.

The group said the move would help the government achieve its target of doubling UK exports by 2020.

FPB chief executive Phil Orford said: “Most small firms we talk to still see their growth coming from the UK, and there’s still a limited appetite and few incentives to move into exports.

“The research and development relief has proved both popular and effective, and a similar relief for export activity could be the carrot to encourage small business owners to consider overseas trade.”