To ask Her Majesty's Government what steps they are taking to support small businesses owners who commit to investing in their businesses in 2021.
28 April 2021
The Government aims to make the United Kingdom the best place to start, grow and run a business. Support for small businesses to grow and invest comes on top of the Government’s existing plans to support growth through significant investment in infrastructure, skills and innovation – as set out in ‘Build Back Better – our plan for growth’, published alongside the Budget.
From April 2021 until the end of March 2023, companies can claim 130% capital allowances on qualifying plant and machinery investments. The super-deduction is the biggest two-year business tax cut in Modern British history - supporting British enterprise in leading us to the post-pandemic economic recovery. Under the super-deduction, for every pound a company invests, their taxes are cut by up to 25p. The super-deduction cuts the tax bills of companies that invest and the more they invest the less tax they will pay.
In order to help smaller firms improve business practices and productivity we are developing a new world-leading SME management training offer, Help to Grow: Management, aiming to directly upskill 30,000 business leaders helping them realise their potential. The Government will also launch a new online platform where businesses can access impartial advice on software, and a voucher to reduce the costs of buying that software through the Help to Grow: Digital scheme.
Our new Recovery Loan Scheme launched on 6 April, provides additional finance and further support to protect businesses and jobs, ensuring businesses continue to benefit from Government guaranteed finance throughout 2021. The new scheme will enable businesses of any size to continue accessing loans and other kinds of finance from £25,001 up to a maximum of £10 million per business as they grow and recover from Covid-19 related disruption. Invoice and asset finance from £1,000 is also available.
For those starting a new business or for businesses which have been trading for up to 24 months, the Start Up Loans Company provides loans of between £500 to £25,000 at a competitive rate of 6%. In addition to finance, every loan recipient is offered a dedicated mentoring service and access to a free expert business mentor for 12 months to help them with every aspect of setting up a business. The Start Up Loans programme, operated by the British Business Bank, has issued loans to businesses in every Local Authority and UK parliamentary constituency since 2012.
The Government continues to provide a range of support and information for small businesses, including on starting and running a business, through our online services on GOV.UK. Support and advice is also available via the Business Support Helpline on FREEPHONE 0800 998 1098, and via the network of 38 local Growth Hubs in England.