Businesses to get £40 billion credit help in Autumn Statement

A series of measures aimed at helping UK businesses and the wider economy have been announced by Chancellor George Osborne in his Autumn Statement.Businesses to get £40 billion credit help in Autumn StatementThe biggest new policy is a £40 billion “credit easing” scheme to make it simpler to underwrite bank loans to small firms.

Small businesses with an annual turnover of less than will £50 million qualify for the scheme.

Mr Osborne says it will cut the average interest rate for those firms by 1%.

The chancellor also said he wanted to help medium-sized UK businesses – “who have been neglected for too long” – and announced a £1 billion business-finance partnership aimed at companies.

Small businesses have complained banks – including those bailed out during the crisis – will not lend to them and this is meant to solve that problem.

On Tuesday, Mr Osborne decided to cancel January’s 3.02 pence per litre fuel duty hike.

The chancellor also announced tax relief for people who invest in start-up businesses.

From April 2012, anyone investing up to £100,000 in a new start-up business will be eligible for income tax relief of 50%. In 2012, any tax on capital gains invested in such businesses will also be waived.

And the government has identified more than 500 infrastructure projects – road, rail, air and high-speed internet – that it wants to see built in the coming years.

An extra £1 billion is being allocated to the Regional Growth fund in England and almost £500 million will be invested in high-tech industries.

The government has also announced a £500 million housebuilding scheme in England as well as the mortgage indemnity scheme to help 100,000 people get onto the property ladder.

The chancellor has also announced a £1 billion “youth contract” to subsidise six-month work placements for 410,000 young people and increase the number of apprenticeships.

December 1, 2011  Tags: , , , , , , ,   Posted in: Building Businesses, Business Development, Business Growth, Business Jobs, Business Win, Global Businesses, Growing Business, Growing Economy, Uncategorized

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