The Autumn Statement 2014 brought good news for UK SME owners as Chancellor George Osborne announced that small and medium sized enterprises would see a boost in 2015.
The government has pledged £400 million to extend venture capital funds that invest in small businesses around the UK, which are known as Enterprise Capital Funds, giving small businesses more financial support.
The government has also extended the Funding for Lending Scheme (FLS) for a year, the scheme was due to end in January 2015 however has been extended to finish in January 2016.
The Chancellor commented, “Now that credit conditions for households and large businesses have improved, it is right that we focus the scheme’s firepower on small businesses, which are the lifeblood of our economy.”
The extended FLS will focus solely on smaller firms as they provide such a large percentage of the UK’s economy; they currently contribute a huge 49.8% to the economic total. As SMEs are such a large contributor to the UK’s economy it is important that they get the support they deserve from the government which the Autumn Statement has promised.
The FLS guarantees 75% of SMEs a loan, with the remaining 25% able to receive funding from other lenders. Extending this scheme should compliment other methods the government are yet to announce that aim to support small businesses and their finance.
The Chancellor also announced that £500 million of new bank lending will be made available for small businesses in 2015. This will be allocated under the Enterprise Finance Guarantee Scheme which was set up to encourage banks to lend to SMEs.
If you are a small business owner looking for advice on how to manage your accounts MCC Accountants are specialists in small business accounting and tax services working with our clients closely to ensure that their needs are met. For more information on the services that we offer contact us by calling 0161 707 1500.