The budget must be the most talked about topic this week, in all meetings, networking, events or committee environments Ive attended this week, this has been on the edge of everyones lips, and specifically those of SME businesses on how it actually affects them.
Here’s some key points from the budget announcement, specifically focusing on SME businesses around the East Midlands and how it affects you:
Business Support
£4bn support package for SMEs including
- New credit adjudication body (improving access to finance)
- Increase bank lending to small firms
- £3bn government contracts to be awarded to SMEs
- Business rates cut (from October 2010)
- Annual investment doubled to £100k
- £200m new growth fund to help growing companies
Economy
- Inflation will be back to 2% by January 2011
- Growth is predicted at 3% in 2011
- Borrowing to be cut to £167bn this year
- No announcements on VAT, Income Tax or National Insurance
- IHT freeze for four years
- Guarantee of jobs or training to every 18-24 year old extended to 2012
Government
- £11bn government efficiency savings
- Cuts to public sector bills
- Public centre pension schemes
- £100m local road repairs
- £285m for motorway improvements
- HSR announced
This information was supported by DNCC, Derbyshire Chamber for which I am a council committee member, lobbying issues affecting small businesses in the region.
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