One of the most important was the proposed credit easing for businesses, which will mean that finance should be more freely available than it has been from the traditional sources such as banks.
However, the credit easing plan has already been attacked by Ed Balls, Shadow Chancellor, who said that it was very similar to the small firms guarantee scheme, which “has been around for years.”
And Manos Schizas, senior policy advisor for the Association of Chartered Certified Accountants (ACCA) said that the plans for credit easing “look like a cross between 2008’s failed Working Capital Guarantee and the European Investment Bank guarantees, which have experienced very low uptake in the UK...”
Other policies unveiled in the Statement include the extension of the Small business Rate Relief scheme, the income tax and capital gains relief for those investing in start-ups and the angel investment matching plans.
The small business rate relief scheme had been due to expire in October 2012 but will now run until April 2013, which could be worth over £200m to SMEs.
There was also good news for people who invest in start-up businesses, as they will now be able to gain 50 per cent income tax relief on investments of up to £200,000.
The Federation of Small Businesses welcomed both moves and said that they “will give start-ups and fledgling businesses the chance to bypass the high street banks and find alternative sources of finance.”
While Richard Anton, chairman of the British Venture Capital Association, said: "The Chancellor has today offered an invitation to invest in innovation. This is a rare case of a George coming to the assistance of dragons. Angel investors will be delighted."
For more information, please visit www.milsted-langdon.co.uk
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