£900m small business funding package set to be revealed
Osborne expected to use Autumn Statement to announce major finance boost for small firms alongside business rates review
Ahead of the chancellor of the exchequer’s Autumn Statement reveal this afternoon, Startups looks at the measures George Osborne is expected to announce to support the UK’s small businesses.
Here’s what we know from the Treasury so far:
Small business finance
The chancellor is set to announce a £900m funding boost for small and medium-sized businesses which will include a £400m investment for the government-backed British Business Bank, alongside £500m funding for the Enterprise Finance Guarantee scheme to support new lending in 2015 to 2016. The additional streams of funding are set to enable the Business Bank to meet its goal of facilitating £10bn worth of lending to small companies by 2018.
Although there is little detail around this yet, it’s predicted that Osborne will announce a review of the 400 year-old business rates system to be completed by the 2016 Budget. The review is expected to focus on helping high street independent businesses compete with online merchants; timely given the approaching Small Business Saturday initiative.
Technology and innovation
It’s expected that Osborne will reveal plans for a new £200m science institute in Manchester, which will also be partially funded by private investors.
We’re yet to know whether there will be tax cuts but it is unlikely there will be any tax hikes; in an interview with the BBC’s Andrew Marr earlier this week the chancellor asserted “there will be no tax increases in the Autumn Statement”.