The founder of Cobra beer has said the Government is not doing enough to help small firms survive the financial crisis.

Lord Karan Bilimoria made the comments at a reception for Asian business held by London Mayor Boris Johnson, the Daily Telegraph reported.

Bilimoria said the Government should provide immediate help for entrepreneurs and that tax incentives were needed for small firms. Current funding was inadequate, he said.

'The EIB has promised £4bn over four years,' he said. 'In the first six months of this year, the net borrowing by SMEs was £5.7bn. So £1bn a year is not enough.''

He added: 'We all know the Government wants to help. Now is the time it can. We're lucky because we're not in the eurozone so we can act independently, as we did with the interest rate decision last week. I hope this is a case of better late than never and not too late.'