Budget boost to small businesses

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The Government pledged to boost enterprise by providing extra help to smaller firms and to do more to improve workers' skills under a package of Budget measures targeted at business.

Chancellor Alistair Darling told MPs he wanted to make sure Britain remained one of the best countries in the world to do business.

The Government will consult on "radical" new proposals to impose a limit on the amount of regulation that can be imposed by Whitehall departments, he said.

"I will also provide a capital fund of initially £12.5 million to specifically encourage more women entrepreneurs."

Mr Darling said there were over 750,000 more small and medium sized firms than when Labour came to power in 1997, and the Government wanted to do more to help the sectors win extra business from the public sector.

"We will take immediate steps to give firms better access to Government contracts, and to help them with their cashflow. I am asking Anne Glover, Chief Executive of Amadeus Capital Partners, to look into what other barriers we can remove and the practicality of setting a goal for small and medium enterprises to win 30% of all public sector business in the next five years.

"I believe that this could help promote enterprise in one of our most innovative and dynamic areas of the economy. I believe we can help support them grow their businesses, creating new jobs and opportunities."

Mr Darling announced an extra £60 million over the next three years to improve skills, tackle shortages of skilled workers and increase the number of apprenticeships.

The Government published a new 10-year strategy to make the UK the most "enterprising" economy in the world and the best place to start and grow a business.

Measures included a National Enterprise Academy, offering skills training and qualifications to 16 to 19-year-olds, support for young entrepreneurs, the over 50s and women, and a set of detailed measures promoting business mentoring, work placements, skills training, improved careers advice on self-employment and access to business support.