Axis Business Services, Shirethorn House, Prospect Street, Hull, HU2 8PX

Government Announces Reforms to Promote Small Business Growth

This week, Axis Telecoms learned that in this year’s Autumn Statement, the government announced a host of measures designed to promote small business growth.

All the Help They Can Get

As a telecoms and energy supplier to small businesses all over the UK, Axis Telecoms understands that with a typically limited flow of cash, SMEs need all the help they can get to ensure they build steady profit margins.

Considering the role of small businesses in promoting economic prosperity, it’s in the government’s best interest to spark small business friendly policies and aid them in developing those margins. Undoubtedly, that is why UK Chancellor George Osborne included a list of measures to promote SME growth in this year’s Autumn Statement.

The Autumn Statement Measures

According to the BBC, Osborne announced that the government will inject £400 million into Enterprise Capital Funds; government-endorsed venture capital funds which plough money into small businesses.

Furthermore, the Autumn Statement revealed that it would guarantee a total of £500 million in new lending to small businesses. Both schemes are set to be administered by the organisation Vince Cable set up last year, the British Business Bank.  Meanwhile, the government also announced in this year’s Autumn Statement that it’s extending the Funding for Lending (FLS) programme into next year.

Improving Credit Conditions for Small Businesses

Whilst announcing the measures, Osborne said: “Now that credit conditions for households and large businesses have improved, it is right that we focus the scheme’s firepower on small businesses, which are the lifeblood of our economy.”

The coalition’s efforts have been derided by Labour. A party spokesperson commented: “Labour will back British businesses by cutting business rates for small firms and setting up a proper British Investment Bank so that firms can get the finance they need to expand.”

Spurring Small Business Growth

Despite disagreement, all major parties recognise that in order to spur prosperity, the government needs to promote policies which enable small business growth. Hopefully, these measures will give SMEs everything they need to develop a handsome bottom line.