He said: "The numbers Mr Osborne thinks this policy would help seem to have been plucked out of thin air.
"Many small businessmen will be shocked to learn that the Tories believe a start up business has a wage bill of a quarter of a million pounds.
"What is most worrying is that this tax break for new businesses would mean that they will be able to undercut existing small companies who are already struggling.
"All small businesses need a helping hand at this time."
