It was pleasing to see that the Chancellor's Budget contained a raft of measures designed to help business achieve the level of growth the economy so desperately needs. In particular, we welcome the greater than expected reduction in corporation tax, the extended small business rate relief until October next year and the creation of 21 new enterprise zones.
Small and medium sized enterprises have continually complained of stifling regulation and we are particularly pleased to see that the Chancellor has committed there will be no new regulation for businesses employing less than ten people, for the next three years. This and the new rules requiring planners to prioritise jobs and growth when considering planning applications, are most welcome.
However, the Chancellor might have gone further, with this government's stated aim of substantially reducing business regulation if this country is to compete with other markets, where the barriers to encouraging enterprise are far less.
Access to finance for SMEs is still so important. Our members are currently advancing around £15 billion to businesses in the UK and Ireland. The budget contained no new lending initiatives but of course the recently announced Project Merlin, the agreement between the government and the major banks should provide additional funding to SMEs this year.
Finally, the changes to fuel duty will be welcome to most businesses and particularly
those whose expenditure in transport is a major cost factor. No doubt many will
say that these changes have not gone far enough but it is a step in the right
direction.
Kate Sharp, chief executive of the ABFA