Will Autumn Statement plans go far enough?

Date: 29th November 2011

It will take more than the government's proposed credit easing plans to give the UK's smaller businesses a significant boost.

That is according to specialist accountancy service TaxAssist Accountants, which said excessive red tape and poor access to credit have hade a huge impact on a number of firms.

It comes as Chancellor George Osborne prepares to deliver the coalition's Autumn Statement, live updates of which will be posted here, in which he will outline plans to make £40 billion available to small firms.

Jo Nockels, Training and Communications Manager at TaxAssist Accountants, said "We work more than 38,000 small businesses across the UK and have seen the devastating impact the excessive red tape, unsustainable policies and lack of funding have had.

"So, while we welcome any support the government is offering small businesses, there are serious question marks over whether the proposed 'credit easing' will do the job."

The expert queried whether or not credit checks and lending criteria will be relaxed, saying that if not the new scheme could fail to kick start growth.

"We'd advise all small businesses that have previously been turned down for credit to revisit their business plan; make a clear case backed up by solid cash flow figures and forecasts for growth. There's funding out there if the business plan is strong," she added.

Posted by Jacob Williams