The Chancellor's Budget contained a raft of measures designed to support SMEs and we applaud the increased focus on supporting the UK's firms as they help to drive the economy out of recession. We welcome the additional capital growth funds for growing companies, the cuts in corporation tax, the increase in government contracts to go to SMEs, plus the speeding up of payments to businesses from government departments, all of which should help bolster firms further. Access to finance for SMEs is still so important though, which is why we organised this week's Parliamentary breakfast to help ensure it remains firmly on the agenda. Our members are currently advancing around £14 billion to businesses in the UK and Ireland and the Chancellor's measures should only further help provide additional funding to companies.
However, we do have concerns over the new mechanism by which firms will be able to dispute credit decisions if they feel they've been wrongly denied. While it is well intentioned, it is fraught with issues both in terms of the principles of free trade and in terms of practical application.
It also remains to be seen how the new investment corporation - called UK Finance For Growth - will actually oversee the government's £4bn range of support for businesses and if it will provide the practical assistance needed for firms to negotiate potential bureaucracy.