Representing the country’s start-ups and small businesses, the National Enterprise Network has welcomed the Chancellor’s announcement of a further £130m for the Start Up Loan Scheme.
“In their early stages, many start-ups need initial funding but are frequently seen as not sufficiently credit worthy to justify support from the banks. The Start Up Loan Scheme which is made available through many of the Enterprise Agencies up and down the country provides an alternative,” said Alex Till, Chair of the National Enterprise Network, “and providing this further funding will see more and more businesses establishing themselves.”
Also welcomed is the recognition that Business Rates are a huge burden to the smaller businesses with shops and offices, and the complete abolishment of them for the sub £51,000 turnover businesses, with reliefs for those in excess of this will help with profitability and level the playing field with online competitors.
“Particularly at the moment the changes to Business Rates are exactly what is needed,” noted Alex Till, “and we hope that even when we are through the Covid-19 issues the Chancellor will leave them in place.”
“Subsidising statutory sick pay in the short term will be a help to small business owners who are likely to face cashflow problems when staff are not able to work, but a bigger issue is likely to be late payment by bigger companies, looking to address their own cashflow strains.” says Alex Till, “We are picking up this concern with the new Small Business Commissioner and look to the Chancellor to drive a prompt payment culture. We would have liked to have seen a comment along these lines in the Budget speech particularly as substantial funds are being made available to bigger businesses to alleviate the pressure on them.”