Liz Blackman the Member of Parliament for Erewash asked the Prime Minister about the Government’s support for small business in Erewash, at Prime Minister’s Questions this week.
‘Labour is providing real help now for business,’ said the MP, ‘but my concern is that the information and support is getting through to those businesses that need it now. I am working closely with Erewash Partnership, of which I am a member, to ensure this is happening. Small businesses are the lifeblood of our economy.’
Government measures include:
- A £10bn Working Capital Scheme, securing up to £20bn of short term bank lending to companies with a turnover of up to £500m
- An Enterprise Finance Guarantee Scheme, securing up to £1.3bn of additional bank loans to small firms with a turnover of up to £25m
- A £75m Capital for Enterprise Fund (£50m from Government augmented by £25m from the banks) to invest in small businesses which need equity.
- Reduction in VAT from 17.5% to 15% from 1 Dec until the end of next year.
- Setting up a new HMRC Business Payment Support service to allow any business in temporary financial difficulty to pay their tax bills on a timetable they can afford. This includes VAT, corporation tax, income tax and National Insurance Contributions.
- Deferring the planned increase in the small companies’ rates of corporation tax.
Businesses based in Erewash who would like help or information can contact Erewash Partnership on 0115 9443944 or Liz Blackman MP’s office on 0115 9224380.
Liz Blackman’s question to Gordon Brown and his reply are given below:
Prime Minister
The Prime Minister was asked—
Engagements
Q1. [246425] Liz Blackman (Erewash) (Lab): If he will list his official engagements for Wednesday 14 January.
The Prime Minister (Mr. Gordon Brown): Before I list my engagements, I am sure that the whole House will wish to join me in sending our profound condolences to the families and friends of the servicemen killed in Afghanistan since we last met: Serjeant Christopher Reed of 6th Battalion the Rifles, and Corporals Robert Deering and Liam Elms, Lance Corporal Ben Whatley and Marine Travis Mackin, all from the Royal Marines. Afghanistan is the front line against the Taliban. These were brave and committed men, dedicated to their country and to their colleagues, and I know that the whole House will agree with me that we owe them, and all who have lost their lives, all our gratitude for all their services. Their lives will be remembered with pride.
This morning I had meetings with ministerial colleagues and others. In addition to my duties in the House, I shall have further meetings later today. I shall be meeting President Sarkozy this evening and visiting Chancellor Merkel on Thursday, and looking at what we can do to work for a ceasefire in Gaza as well as what the G20 will be able to do to deal with the global financial crisis.
Liz Blackman: I thank my right hon. Friend for his answer. May I, too, offer my condolences to the families affected?
Today’s announcement on support for small businesses will help some firms in Erewash, and will crucially help my constituents stay in work. However, can my right hon. Friend assure me that the help that is on offer will be properly targeted and focused on the businesses that need it most?
The Prime Minister: I am grateful to my hon. Friend, who has been a great supporter of business in her constituency. This is real help for business now. It is targeted and focused, it is funded and it is additional to what has been done before. It is real help to small businesses that are looking for help with their overdrafts or looking to invest in the future. It is real help for businesses that are looking for working capital over the next year, and will increase the supply of that by £10 billion. It is real help for high-technology firms that want their debt replaced by equity. We will buy shares in those companies, and there will be real help with credit insurance. This is real help now, to deal with specific problems—real help that is funded by Government.
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