Chancellor’s autumn statement reveals SME growth plans

The autumn statement included a number of different measures that are designed to help SMEs boost growth. The aim of the measures is to help improve overall economic growth in the UK and should be a good reason for seasonal cheer according to statement s from several different business organisations.

One of the most prominent measures announced by Chancellor George Obsorne was the extension of the small business rates relief scheme which will now be available to qualified SMEs up until April 2014. As a result of the extension, as many as 350,000 businesses across the nation may now be exempt from business rates until the year 2014.

In addition, Osborne also offered a general outline that will help to increase the amount of investment the government makes in machinery and plants increasing its contribution from £25,000 up to £250,000 and in the meantime tossing out the 3% proposed increase in fuel duty.

The Chancellor also announced that the corporation tax will drop down one percent to 21% and a new business bank will be created with the intent of lending to UK businesses and SMEs primarily. To get it started the bank will be provided with a billion pounds of extra capital.

The Forum of Private Business that is based in Knutsford responded to the announcement by stating that they approve of many of the Chancellor’s new schemes. Phil Orford, the chief executive, stated that the increase in the Annual Investment Allowance is an obvious admission that the government should not have reduced the allowance over the past year.

He went on to explain that given the fact that UK businesses have as much as £700b in cash reserves it could be easily argued that Chancellor actually made it unattractive for companies to invest last year.