Government Support for Small and Medium Sized Businesses Apprenticeships 177,000 apprenticeships delivered in just one year. Between 2009-10 to 2010-11 (academic years) the number of people starting an apprenticeship rose from 279,000 to 457,000 a rise of 63%. Starts for 19-24 year olds have expanded by 69.3% over the past two years. Businesses receive 1,500 of incentive payments for every apprentice that they take on. This will support up to 40,000 new apprentices in 2012-13. Finance 214.9 billion of finance for businesses supported by Government. Enterprise Capital Funds - Over 340 million of venture capital investment for SMEs with highest growth potential. National Loan Guarantee Scheme - Up to 20 billion of guarantees for bank funding over two years which will allow lower cost lending to SMEs. Funding for Lending Scheme - A scheme designed to encourage mortgages and loans from banks to be cheaper and more easily available. StartUp Loan Scheme - 82.5 million scheme available to help any 18-24 year old with a business idea. Individuals could get up to 2,500 of loans with repayments over a five year period with additional support and training. Growth Accelerator - 200 million programme to help 26,000 high potential SMEs. Regional Growth Fund - 2.4 billion fund across England running from 2011-15. 1.4billion allocated so far which supports up to 330,000 jobs. Business Angel Co-Investment Fund - 50 million fund to encourage Business Angel investment. Enterprise Finance Guarantee - This fund will continue until 2014-15 which will provide, subject to demand, over 2 billion over the next two years. This will be to facilitate more bank lending to viable SMEs which do not have security for a normal commercial loan. Export Finance Guarantee a new guarantee specifically for exporting SMEs. Government will spend 35 million to double the number of SMEs that UKTI support a year by 2015. This will see a rise from 25,000 to 50,000. New business bank to boost lending A Government-backed business bank with Government funding of 1 billion. The new bank will aim to attract private sector funding so that when fully operational, it could support up to 10 billion of new and additional business lending.
Regulation and the Red Tape Challenge The Government is taking decisive action to transform the regulatory landscape that businesses operate in and fundamentally alter the regulatory culture in Whitehall and across Government. Red Tape Challenge - 1,200 regulations are part of this challenge. Over half have been scrapped or improved. No additional net increase in the costs of regulations to business. The One In, One Out system Caps the cost of regulations so no new regulations which impose costs on businesses can be brought in without regulation of an equivalent value being removed. This resulted in a net annual saving of 3.2 billion in 2011. Moratorium on new domestic regulation Micro businesses (those employing fewer than 10 employees) and genuine start-ups have been exempted from all new domestic regulation for three years from April 2011. Health and Safety shops, offices, pubs and clubs will no longer face burdensome health and safety inspections, and over 3,000 regulations will be scrapped or overhauled. From April 2013, the Government intends to introduce binding new rules on both the Health and Safety Executive and on local authorities that will exempt hundreds of thousands of businesses from health and safety inspections. In future, businesses will only be inspected if they are operating in high risk areas, such as construction, or if they have a poor record. The Government will also change the law so companies will only be liable for civil damages in health and safety cases if they can be shown to have acted negligently. In addition, the Government will implement the proposals of Lord Young s review which is designed to strike a more appropriate balance between safety in the workplace and excessive burdens on businesses. Scrapped proposals for specific regulations which would have cost business over 350 million a year. This includes the proposed extension of the right to request flexible working to parents of 17 year olds and the planned extension of the right to request time to train to companies with fewer than 250 employees. Businesses to save millions in reporting and accountancy fees - The changes to regulations will align mandatory audit thresholds with accounting thresholds. This means small and medium-sized businesses will be able to obtain an exemption if they meet two out of three criteria relating to balance sheet total, turnover and number of employees. This change will allow 36,000 more companies to choose not to have an audit. Exempt micro-businesses from certain EU accounting rules Government has already achieved an agreement from EU Ministers which will deliver between 150-300 million per year in savings to UK small businesses. Sunset clauses on regulations The Government is bringing forward legislation to impose more sunset clauses on regulations so that unless Parliament confirms they are still necessary and proportionate after a certain time period they may cease to be law. Self-employed workers The Government has agreed to exempt 1 million selfemployed people from disproportionate workplace regulations.
Pension automatic enrolment Government has exempted SMEs from implementing the pension automatic enrolment, saving them up to 3 billion per year. Environmental red tape 73% of Environment regulations will be scrapped or improved, which will save business at least 1 billion over five years, whilst maintaining important protections. EU regulation Government has established a new copy-out principle of direct transposition for EU regulation and will avoid early implementation of European legislation to end the gold plating of EU regulations. Enterprise and Regulatory Reform Bill The latest package of measures will help cut unnecessary red tape and take steps towards creating the right conditions for businesses to grow. The proposals to free up business include: 1) Removing automatic liability on business for civil damages in health and safety cases, when they are not found to have been negligent. 2) Exempting intermediary companies from the Estate Agents Act, to encourage new businesses to flourish. 3) Simplifying entry procedures into bankruptcy by removing the court process when it is not needed, saving individuals, Government and businesses time and money. 4) Protecting individuals by providing guidance and a legal defence from committing the criminal cartel offence. Business Support The Government is committed to ensuring that entrepreneurs can access the information that they need via www.gov.uk and a new telephone contact centre for those businesses not online. A network of business mentors Government has introduced funding to support a network of 15,000 mentors, (40% of which so far are women). Mentors will provide experienced and practical support to existing businesses and are accessible through a new online mentoring gateway www.mentorsme.co.uk. Business Coaching for Growth A new scheme for the gazelles of the business world with the potential to increase employment or turnover by 20% each year over three years. The scheme will deliver specialist advice, coaching and mentoring tailored to a business specific needs and aimed at helping it become tomorrow s market leader. One-click model of business registration Making it easier to register a new business with a new web-based incorporation service to set up a simple limited company for 18. New business bank to boost lending This will aim to attract private sector funding so that when fully operational, it could support up to 10 billion of new and additional business lending. Government Procurement 70 billion of future contracts Government has published over 70 billion of potential future contracts over the next five years, across 13 different sectors including construction, property, medical and police equipment.
contractsfinder.businesslink.gov.uk A new free online contracts finder that is the place to find public sector contracts worth over 10,000. Single submission of pre-qualification data This is now permitted for all procurements in common commodities, so that firms do not have to submit the same data over and over again which will provide savings for businesses and government. End pre-qualification questionnaires This has been ended for all central government procurements under 100,000 so that procurers are free to choose the best route to market for their circumstances. Early payment It is now required that central government departments pay 80% of undisputed invoices within five days and to include in contracts a clause stipulating that primary contractors must pay their own suppliers with 30 days. The average payment time for local authorities is now 18 days. Best Value Guidance on public procurement is simpler and that the role of small businesses in delivering public services is underlined. Enterprise To encourage enterprise Government is doing the following: Enterprise Investment Scheme (EIS) and Venture Capital Trusts have been reformed, increasing the rate of income tax relief for EIS to 30% and increasing amounts that can be invested in qualifying companies and the size of qualifying companies. SME rate of R&D tax credit Increased to 200% in April 2011 and again to 225% from April 2012. Entrepreneurs Relief Increased the lifetime limit for Relief to 10 million (when the Government took office it was just 2 million). New Enterprise Allowance To help unemployed people start their own business, with a weekly allowance worth 1,274 over 26 weeks and a start-up loan of 1,000. Be the Boss A 5 million fund to allow the Royal British Legion to help ex-service personnel to set up and grow businesses by reducing the costs and barriers associated with self-employment and start-ups, including mentoring support. The Government is also working with social landlords to remove red tape and encourage tenants to start up businesses. Working towards a more balanced economy Regional Growth Fund A 2.4 billion fund operating across England from 2011-2015. This fund is designed to promote private sector growth in those areas previously over reliant on the public sector. 1.4 billion has been allocated so far supporting up to 330,000 jobs. For every 1 of public money spent, Government has leveraged 6 of private sector investment totalling 7.8 billion (to date). Enterprise Zones 24 zones have been introduced across England to generate business and jobs, helping to rebalance the economy. Benefits to include a simplified planning
regime, a business rate discount worth up to 275,000 over a five year period and Government support to ensure that super-fast broadband is rolled out throughout the zones. Local Enterprise Partnerships There are now 39 LEPs covering 99% of England and bring together business and civic leaders to promote local economic growth. Cities Programme The Government is supporting eight cities and their surrounding areas to agree tailored city deals. Rebuilding supply chain capacity 125 million has been secured for major UK-based manufacturers to rebuild supply chain capacity and establish supply chain initiatives for rail, oil and gas and tunnelling. Energy intensive industries The Government is supporting this sector through a 250 million funding package. Green Investment Bank 3 billion has been ring-fenced for the bank to invest in green technologies. Key infrastructure projects will be given priority status such as the roll out of highspeed broadband, work to transform the National Grid and major improvements to the rail network to ensure that they are not delayed. Planning Planning system The Government is introducing a powerful new presumption in favour of sustainable development and streamlining the system for planning applications with new fast-track planning for major infrastructure. New National Planning Policy Statement This streamlines planning guidance from over 1,000 pages to just 52 pages. Revitalise high streets The Government has commissioned a review, chaired by leading retail consultant Mary Portas, on how to revitalise British town centres and high streets. Creating a more educated and flexible workforce Science budget This will be maintained in cash terms at 4.6 billion each year. The Government will also add 200 million of new money to the UK Research Partnership Investment Fund (UK RPIF), supporting long-term university capital projects. To access the money, universities must match the funding by at least double from private companies or charities; taking the total investment, including universities own contributions, to at least 1 billion. Science and Research In addition to the Spending Review s 1.9 billion investment in science and research capital, Government has committed a further 595 million, including investment in e-infrastructure and high performance computing; in the Graphene Global Research and Technology Hub; in the Research Councils research and innovation campuses; and in the recently announced UK Research Partnership Investment Fund for securing private co-investment in university research infrastructure.
Technology Strategy Board The Government has boosted the role of the Board which invests 300 million per annum in business-led innovation support. Innovation and Research Strategy for Growth 200 million investment in a network of Catapult Centres, which will create critical mass for business and research innovation; a new innovation voucher programme. The Government will also work with NESTA to develop a new UK Prize Centre and Prize Fund to run innovation inducement prizes.