Helping the Private Sector-led Recovery

The Coalition Government’s focus on supporting growth, fairness and reform, emphasises that for businesses, there will be a strong focus on creating the right conditions for sustainable economic growth.

The Chancellor's key business announcements include:

In reaction to the Review, the Federation of Small Businesses (FSB) has additionally urged the Coalition Government to now put in place what it considers to be 'the missing link', namely a Small Business Programme for Growth. This, FSB maintains, will address the need to create growth by increasing the tax base, creating more businesses and incentivising small firms to grow and innovate

Backing Small Business

The government has published its strategy to assist the growth of small enterprises across Britain, including measures to improve access to finance and make it easier to do business with the public sector.

The UK’s five million small businesses constitute a key segment of the economy and are a major driver of economic growth, providing 60 per cent of jobs and half of the GDP. In order to create favourable conditions for private sector growth, the government has announced developments in six major areas to support SMEs, covering:

Improving Access to Finance

The government will make provision to maintain reliable sources of public finance to compliment commercial lending. The Business Secretary has announced several measures in response to the consultation to the ‘Financing a Private Sector Recovery’ green paper launched in July 2010, these include:

Making it Easier to do Business with the Public Sector

Measures to support SMEs seeking to access government contracts and procurement opportunities, including:

Supporting Those Starting a Business

To reduce the burdens for those seeking to start a business and encourage other would-be entrepreneurs to move forward with starting a business. This measure also seeks to tackle institutional bias for those on Jobseekers Allowance or in social housing and support enterprise creation by all members of society, including people from disadvantaged backgrounds, by:

Making Sure the Competition Framework Helps New Companies Access Existing Markets

To reduce barriers to entry and growth in existing markets to increase competition through:

Providing Targeted Support to Those That Have High Growth Potential

To benefit new and existing high growth firms which have greater capacity for job creation, innovation and commercial success, including:

Ensuring that Government is Deliberately Reoriented Towards Their Needs

A general approach to continue to review and explore support methods for SMEs. The Lord Young Report in spring 2011 will investigate what changes are necessary to make government more SME and start-up friendly.

Some of the measures that Government is announcing will apply to England only but Government will look to work closely with the Devolved Administrations to ensure that SMEs are supported across the UK.

Read the strategy in full on the Department for Business, Innovation and Skills website (http://www.bis.gov.uk/backing-small-business)


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