smallbusiness.co.uk: Helping your business think big

In his Pre-Budget Report Alistair Darling has announced a £1 billion small business finance scheme to help struggling companies gain credit.

As part of a host of proposals targeted at SMEs, the chancellor pledged help to small businesses through improved access to credit and a proposed easing of their tax burden.

Speaking to SmallBusiness.co.uk, Phil Orford, chief executive of the Forum of Private Business, said both the finance scheme and proposed tax measures were good news for SMEs.

‘Although we are not yet sure of the mechanisms through which the finance scheme will be delivered – whether via banks or other channels – it has to be broadly welcomed.

‘For us the issue is whether small businesses will be aware of these initiatives, particularly as the finance scheme is only temporary.

‘We would urge all small businesses to go into the banks as soon as possible and enquire about the scheme. They should also ask specifically about the European investment money he announced seven high street banks have now made available.’

However, Orford said the proposed increase in National Insurance by half a percentage point in the next 18 months was the ‘sting in the tail’ for both employers and employees in the chancellor’s report.

Offsetting of losses against taxes for the next three years, and an increase in empty property rate relief on properties worth less than £15,000, were also among the roster of proposals made by the chancellor.