Autumn Statement: What small businesses can expect

Bank Lending

The Government is aiming to help small businesses to borrow by unveiling plans to guarantee £20bn of UK debt. Osborne will also declare his intentions to underwrite bank loans to companies with an annual turnover of less than £50m.

The Chancellor hopes this will encourage more people to start businesses. At the Conservative party conference in October, Osborne explained:  "The aim is to use the fact that the government can borrow money very cheaply to help small business to borrow money more cheaply."

It's estimated the measure could result in borrowing costs of small companies being cut by up to 20%.

"I think this is relatively low risk for the Government, given the strength of our balance sheet. The banks are ultimately carrying the risk of the loan to the business," said the Chancellor in an interview with Andrew Marr on BBC1 yesterday.

Pensions

The Chancellor is also set to cancel plans that would enforce companies with a staff of fewer than 50 to enrol their employees into a pension scheme.

Osborne is hoping this will gain him some supporters in the word of small business, although it is unclear whether the decision to scrap the scheme will be permanent or just delayed.

 

 

 

 

 

 

 

 

Young persons' employment

How the government plans to fund the Youth Contract Scheme is also expected to be announced during the speech. This £1billion scheme is aiming to help subsidise businesses so they can take on workers aged between 18-24 and offer short-term placements to the younger generation.

The three-year scheme will give employers subsidies worth £2,275 to take on 160,000 18-to 24-year-olds for six months.

 

To read the main points from the Autumn Statement, click here

All Smarta's Autumn Statement coverage is sponsored by

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