Small firms behind latest banking bail-out

Date: 20th January 2009

British small firms have got behind the government's latest plans to bail-out the country's financial sector.

The Treasury revealed yesterday that it would be making further funds available to guarantee banks' lending and insure debts, following its decision to secure £500 million of lending in October.

The move has been tentatively welcomed by the British Chambers of Commerce (BCC), which while realising that the step was a required one, believe the consequences of failure could be drastic.

Chief economist of the BCC, David Kern, said: "Since the original bank bail-out failed to unblock the paralysis in the credit markets, it was clearly necessary for the government to take further measures."

But, he added, if the new measures were to fail, the task of lending would inevitably land at the government's door.

Small businesses - such as limited companies and partnerships - should also be aware of the upcoming self-assessment tax return deadline, with all submissions now being due online by January 31st.