smallbusiness.co.uk: Helping your business think big

The Chancellor announced proposals to help small businesses in his pre-Budget report.

Alistair Darling committed £500 million for a capital growth fund to support small businesses and an extension to the Enterprise Finance Guarantee scheme.

Darling announced tax help for SMEs by delaying the 1p increase in corporation tax for profits under £300,000, extending empty property rate relief for properties of a rateable value of £18,000 and continuing the ‘time to pay’ scheme, which allows companies to spread tax payments.

Less popular will be plans to raise VAT back to 17.5 per cent from January and an increase in National Insurance by 0.5 per cent in 2011.

Charlie Mullins, managing director of Pimlico Plumbers, says: 'Ramping up National Insurance is no way to get us out of trouble. Small businesses are the backbone of the economy and have been attacked at the very time when they need help the most.'

The Chancellor also announced a 50 per cent tax on discretionary bank bonuses of more than £25,000.

In a poll from SmallBusiness.co.uk, 30 per cent of respondents said they wanted to see VAT kept at 15 per cent, while 32 per cent wanted to see a reduction in VAT and national insurance contributions.

Of the 204 businesses surveyed, 14 per cent wanted more funding for SMEs and 13 per cent to see the government address public debt.