Mon, 10 Jan 2011
Alistair Darling may have promised support for small and medium-sized enterprises (SMEs) in the budget he announced on Wednesday (March 24th), but one organisation believes that his plans are a little "vague."
The Chancellor of the Exchequer revealed a £2.5 billion growth package to invest in key skills and national infrastructure, as well as to promote innovation and support small firms.
Furthermore, a Growth Capital Fund was announced, a pot of money that would provide fast-growing businesses with the private capital required to expand.
Such funding could be used to provide training for employees in order to arm them with the skills required to play an important role in a rapidly growing firm.
Despite these announcements, investmentandbusinessnews.co.uk said it would be interesting to see how the plans develop.
Michael Baxter, editor of investmentandbusinessnews.co.uk, stated: "I feel that a lot of the detail was a little bit vague there; he was talking about this capital growth fund and how £4 million has been committed to by the banks which to be honest with you is not a lot of money really."
He was pleased Mr Darling did address the difficulties of running a business during the current economic climate, but clarification on the details is required.
Within the Budget the chancellor said an agreement had been reached with the Royal Bank of Scotland and Lloyds to provide £94 billion of new business loans.
Half of these funds would go towards helping with the running of a business for SMEs.
Commercial banks have, according to Mr Darling, committed to eventually contribute £500 million of finance.
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