David Cameron aims to save small businesses £10,000

Wednesday 29 January 2014

David Cameron is continuing to work to support small businesses and has pledged to save companies up to £10,000 each year.

Speaking at a Federation of Small Businesses (FSB) event, the prime minister enforced his commitment to making it simpler for small firms to thrive in the UK.

He unveiled a series of packages as part of his long-term economic plan to drive growth.These include the introduction of a £1.1 billion business rates package, which will provide extra support by extending the doubling of the Small Business Rate Relief.

Growth vouchers will also be made available to 20,000 small businesses. Under the £30 million programme, companies will be able to receive up to £2,000 to help them draw on specialist support on hiring, financial management and marketing.

Meanwhile, broadband vouchers will continue to be offered. Ten out of 22 cities in the UK are already benefiting from the scheme, with vouchers worth up to £3,000 each to help small businesses access faster broadband.

The prime minister also reminded firms that from April 2014 every business and charity will be entitled to a £2,000 Employment Allowance to reduce their employer National Insurance Contributions bill. According to the government, over 90 per cent of the benefit of these allowances will go to small business.

Furthermore, with the September fuel duty rise cancelled, the average vehicle used by a limited company contractor will save £1,300 on petrol by 2015.

Elsewhere, more than 3,000 regulations have been identified for scrappage or improvement in an attempt to reduce the amount of red tape small businesses have to overcome. It is thought this will deliver over £800 million a year once changes have been fully implemented.

For those considering setting up a business, the measures will make the environment much easier to navigate and lessen some of the financial burdens associated with entrepreneurship.

Speaking about the package of measures to support small companies, business secretary Vince Cable said: "Small businesses play an important role in boosting growth and creating jobs. I regularly meet these companies across the UK to hear first hand how government can do its part to help small and medium sized businesses grow and succeed.

"We have acted on their demands by improving access to finance with the new British Business Bank which I established last year, by significantly reducing red tape and by increasing the take up of business rate relief."

Matthew Hancock, enterprise and skills minister, added that small businesses are actually responsible for nearly half of job creation in the UK. "That’s why we must continue our drive to provide the support they need to scale-up, move into new markets and hire more staff so that they can compete in the global race," he said.

The government has also linked up with Enterprise Nation to launch The Business Exchange, which encourages larger firms to connect with smaller ones to exchange skills, resources and ideas to help them grow.

This builds on the industrial strategy and is hoped the strengthen the UK business environment.

By Victoria McDonnell

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