Chancellor hails "vital" government tax service

Date: 18th August 2009

The impact of a government scheme aimed at allowing small businesses to spread out their taxation payments has been highlighted by the chancellor of the exchequer.

Alistair Darling visited the Glasgow headquarters of the Business Payment Support Service - and said that it was "vital" that small firms are given help in order to see them through the credit crunch and recession.

The scheme was announced as part of the Pre-Budget Report last November and gives businesses permission to alter their tax planning and change their payments schedule to a more affordable alternative.

Around 60 per cent of these arrangements are designed to be in place for three months or less.

Mr Darling commented: "This service is giving thousands of businesses across the country more time to manage the pressures they're facing and helping to keep many people in work."

He added: "I've said to the team today that this service is a key part of the government's efforts to sustain jobs and get more people back into work faster. It's vital we do everything we can to support people and businesses through this downturn."

Official figures show that around 185,000 firms have participated in the service.

In all, around £3.3 billion of tax payments have been affected so far.