Govt considering £20bn bail-out, says report

Date: 13th January 2009

Government officials are considering proposals to secure as much as £20 billion in small business loans, according to a report.

The BBC has stated that the scheme - which is designed to help businesses such as partnerships and sole traders survive the downturn - could be announced as early as tomorrow (January 14th).

The move would be designed to encourage banks to begin lending to business customers again, something which the government has placed significant emphasis on.

Prime Minister Gordon Brown said at a speech earlier this week: "Failure to act now, and to do so in coordination with our international partners, would mean a deeper and longer recession.

"That would mean lasting damage to our economy and a bigger bill to pay in the future."

British small businesses should also keep in mind the upcoming self-assessment tax return deadline, with all submissions now having to be made online by January 31st.