Thursday 6 December 2012
Chancellor George Osborne's Autumn Statement has been welcomed by firms from across the UK after he announced a series of measures aimed at increasing small business finance.
In his speech, the chancellor pledged to extend Small Business Rate Relief and to introduce a ten-fold increase to Annual Investment Allowance up to £250,000.
Other measures announced by the chancellor include a 25 per cent increase in the budget of UK Trade & Investments (UKTI) to promote exporting, and the outright cancellation of January's planned fuel duty rise.
The announcements were welcomed by the Forum for Private Business (FPB). Phil Orford, chief executive of the FPB, said: "Given that UK businesses are currently sitting on £700 billion of cash reserves, it could be argued that the earlier actions of the chancellor created a disincentive to invest through 2012, at a time when business needs confidence to create growth.
"Nevertheless, we welcome this increase and urge businesses to take advantage of it. There are big savings to be had here for firms who've been waiting for the right time to invest and upgrade equipment, and this kind of spending tends to wash right down the supply chain."
George Osborne's measures were also welcomed by the Federation of Small Businesses, which said that although it will take a long time for firms to get back to pre-recession levels, the measures aimed at boosting small businesses are "on the right track".
Posted by Jenny Arthur