This week’s news focuses on the results of the Pre-Budget Report which was released last Monday. The Mail on Sunday http://tinyurl.com/67sozk reports that the announced measures have been given a mixed response by businesses. Small businesses can now benefit from the Government-funded Small Business Finance Scheme worth £1 billion which will allow them to borrow up to £1 million to ease cash flow problems.

Growing Business http://tinyurl.com/69sfdw has noted the similarity of the Small Business Finance Scheme with the Federation of Small Business’s own suggestion of a £1 billion fund and says that small business should be glad that they are finally being listened to.

However, the reduction in VAT from 17.5% to 15% has faced much criticism. Many small businesses will not pass on this cut to customers. The Sunday Times http://tinyurl.com/5a3tdb reports that in trying to help small businesses, Essex county council is planning on establishing a Bank of Essex, which would tap funds from the European Union’s Enterprise Investment Bank.

In the meantime, the Federation of Small Businesses is urging the Government to move as fast as possible in finalising its own plans.

In an effort to encourage more mature entrepreneurs, The Mail on Sunday http://tinyurl.com/5r4zrm also explains how older people could get up £2million of loans backed by the Prince of Wales and Bank of America. Prime – established by Prince Charles 8 years ago advises about 3,000 people a year, of whom 45 per cent go on to set up their own business.

How are these issues affecting you and your business? Please leave a comment a let us know!

Other News:

Small firms promised easier access to public contracts - http://tinyurl.com/69sfdw

We won’t pass on VAT cut - http://tinyurl.com/67sozk