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Governments Commitment to Small Business Welcomed by Mike

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Mike Weatherley has welcomed commitments to help small businesses made by the Chancellor in the Autumn Statement.

George Osborne MP, Chancellor of the Exchequer, outlined plans in the Autumn Statement to boost access to finance for small and medium-sized business. Three core elements of this plan are:

National Loan Guarantee Scheme

Companies with a turnover of less than 50 million will be able to engage in a credit easing scheme, with 20 billion being made available initially which would be extended to 40 billion. The Chancellor hopes that this will see a reduction of 1 percentage point of interest on business loans. The funding will be allocated across different banks, with a clear audit trail.

Business Finance Partnership

1 billion will be targeted at mid-size companies (a key growth area), through new sources of funding available in partnership with pension funds and insurance companies.

Seed Enterprise Investment Scheme

The extended EIS will mean that in April 2012 anybody investing up to 100,000 will be eligible to 50% income tax relief for one year, and capital gains tax exemption on gains realised in 201213 and then invested through SEIS in the same year.

Commenting, Mike said: “In a speech in a recent debate in Parliament on UK manufacturing, I raised the importance to small businesses of gaining access to finance. Needless to say, I welcome the commitments to help small businesses made by the Chancellor and look forward to reading more details in the near future.”