Conservatives supporting small businesses
In the Observer today, David Cameron discusses his strategy to support small businesses during the coming recession.
- First, councils have an important responsibility. Lots of our small businesses provide goods and services to local authorities, with payment normally coming within 30 days. But Brentwood and Castlepoint councils have led the way in reducing this to just 20 days. These 10 days can make all the difference in paying bills and staff, and helping businesses survive, and I want more local authorities to take it up.
- Second, banks have got to behave more responsibly too. They've got to understand that now taxpayers are keeping them afloat it's their duty to unblock the credit channels, treat small businesses fairly and stop the march to mass insolvencies.
- Third, and most important, government can do most to help our small businesses. Bureaucracy in the Treasury means that many businesses are still waiting for tax rebates. And this government is still pressing ahead with plans to raise its small business corporation tax by 2p.
- It's also about being proactive. A few months ago the Conservatives announced plans to reform insolvency law to give sound businesses the breathing space they need to restructure their finances and stop going to the wall. And today we are calling on the government to allow small and medium-sized enterprises to defer their VAT bills for up to six months. That means a typical small business with 50 employees, revenues of £5m and an annual net VAT bill of £350,000, doesn't have to find £90,000 to pay the taxman when the bank has just taken away its overdraft.