AUTUMN STATEMENT: Funding from Govt to unlock £1bn of finance for small business

Chancellor Philip Hammond today announced a further £400m of funding for businesses via the British Business Bank.

Related topics:  Commercial,  Commercial finance
Amy Loddington
23rd November 2016
bank

The Bank Referrals to Finance Platforms scheme, which is supported by the British Busines Bank, means that designated banks now need to offer any SME they decline for finance the opportunity for their details to be referred to a designated platform. These platforms help to match the SME with alternative finance provider that could provide them with the finance they need to grow and expand.

The Chancellor said this additional injection of £400m into venture capital funds would unlock £1bn of new finance for growing firms.

British Business Bank CEO Keith Morgan said:

"The new Bank Referrals to Finance Platforms scheme, supported by the British Business Bank, gives small firms more opportunities to secure funding, alternative providers access to a bigger market of potential clients, and major banks an extra service to offer their business clients when they cannot provide finance."

Mike Cherry, National Chairman at the Federation of Small Businesses, commented on the Chancellor's Autumn Statement:

“Our members are pleased with the confirmation of plans to remove £6.7 billion from the business rates system, and the decision to make rural rate relief fairer for small firms. We welcome Government responding to our calls to increase investment in local roads and digital connectivity to help rebalance the UK economy.

“We also back the £2 billion per year boost for research, development and innovation, plans to improve management skills, the £400m to improve small business finance through the British Business Bank, and the doubling of export finance. The latter is vital as we need to reach new markets in the wake of the Brexit decision.

“But there will need to be stronger fiscal interventions to boost the economy next year, with the prospect of weaker longer-term growth looming. Small firms want to grow, export, innovate, recruit and be more productive - and they need to know as soon as possible the framework they will operate in. Today's moves to tighten conditions for the self-employed must also be followed up with help to give them parity in benefits so that the UK's army of genuine self-employed people will continue to grow."

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