9 December 2014

BPIF welcomes support for smaller firms announced in Autumn Statement

Small businesses will benefit from measures announced in the Autumn Statement, says the BPIF.

Among those measures welcomed by the BPIF are:

• A support package for SMEs of nearly £1bn, which includes £500m of new bank lending under the Enterprise Finance Guarantee and a £400m extension to Enterprise Capital Funds delivered through the British Business Bank. The Bank of England-backed Funding for Lending Scheme has also been extended to January 2016;

• The announcement that the current double small business rate relief is to remain for another year, with the cap on the annual increase in business rates at 2% for all firms continuing through to March 2016. The BPIF is also pleased that a full review of the current much-criticised business rates system is promised;

• The Chancellor's announcement that R&D tax credit for small and medium firms will be raised to 230%, which provides a much-needed boost for these companies;

• The abolition of national insurance contributions for apprentices under 25 from April 2016 (coming on top of the existing commitment to abolish NICs for those under 21 from April next year), which should encourage more employers to offer apprenticeships and help boost skill levels in the industry;

• The £15 billion infrastructure investment to be allocated for roads, which should help ease wasteful delays currently experienced in transporting printed products across the UK's congested road network and boost growth in the regions.

BPIF Membership Director, Dale Wallis, says "while tight public finances have clearly left the Chancellor with limited scope this autumn, we are pleased that a number of targeted measures to help smaller firms have been introduced covering lending, business rates, tax credits and infrastructure investment".