Saturday, 3 December 2011

Chancellor's help for small businesses: Is this enough?

The Chancellor announced some measures to help small businesses during the November Statement. Among those are:
  • The small businesses rates relief holiday is extended to April 2013.
  • Businesses will be able to defer 60% of the increase in their 2012/13 business rates as result of RPI updating, and pay the increase equally in the following two years.
  • The National Loan Guarantee Scheme is introduced for businesses with turnover less than £50m. The scheme will make banks' lending to small businesses easier by offering low interest rates loans underwritten by the Government.
  • The corporation tax rate will fall in April to 25% (that will not have an effect on small companies though!)
The question is: Is this enough? How many small businesses will benefit and will actually those measures help the economy back into growth given that small businesses are the backbone of the economy? What is your take on this?

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