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Immediate reaction is positive but need to study the detail!
Reply by Helen Smale on 24/03/2010 at 14:58

Lots of positive noises and support for businesses, the challenge will to be turning it into practical reality.

Great that lending is being boosted, the announcement of the Small Business Growth Package - £2.5 billion, the increase of lending by Lloyds and RBS to SME's from £38billion to £47billion brings increased overall lending to business of £94 billlion. And there will be a new Credit Adjudication body who will support businesses who encounter problems accessing the funding.

The cut in business rates for 1 year from October would be welcome, as is the business allowance for key capital expenditure. Raising the threshold on entrepreneur relief from £1million to £2million will help retain astute business people within the UK, and motivated them to suceed.

Many other factors impact on SME's wellbeing, 15% increase in proportion of small businesses winning public sector contracts, with payment of 80% invoices within 5 days, which will ease the squeeze on cash flow.

Proposed removal of the default retirement age of 65, will impact on how business plan and manage their workforce and payroll costs.

My overall summation is that 'the right noises have been made' to business, headline grabbing support schemes. However, on a practical level the many businesses need to continue to trade, pay their employees, and retain their cash flow. The overall forecast in growth does appear overly bullish, and the concern has to be in the event of the targets not being achieved that the UK will struggle for many more years to come. This budget was a positioning piece in the run up the the General Election in May, and it remains to be seen what key decisions and actions the newly elected Government will take to start addressing to economic challenges the UK faces.
Reply by on 24/03/2010 at 16:50

Lots of positive noises and support for businesses, the challenge will to be turning it into practical reality.

Great that lending is being boosted, the announcement of the Small Business Growth Package - £2.5 billion, the increase of lending by Lloyds and RBS to SME's from £38billion to £47billion brings increased overall lending to business of £94 billlion. And there will be a new Credit Adjudication body which will support businesses who encounter problems accessing the funding.

The cut in business rates for one year from October would be welcome, as is the business allowance for key capital expenditure. Raising the threshold on entrepreneur relief from £1million to £2million will help retain astute business people within the UK, and motivated them to suceed.

Many other factors impact on SME's wellbeing, 15% increase in proportion of small businesses winning public sector contracts, with payment of 80% invoices within 5 days, which will ease the squeeze on cash flow.

Proposed removal of the default retirement age of 65, will impact on how business plan and manage their workforce and payroll costs.

My overall summation is that 'the right noises have been made' to business, headline grabbing support schemes. However, on a practical level the many businesses need to continue to trade, pay their employees, and retain their cash flow. The overall forecast in growth does appear overly bullish, and the concern has to be in the event of the targets not being achieved that the UK will struggle for many more years to come. This budget was a positioning piece in the run up the the General Election in May, and it remains to be seen what key decisions and actions the newly elected Government will take to start addressing the economic challenges the UK faces.

Reply by Mark Batchelor on 31/03/2010 at 16:41