§ Mr. AmessTo ask the Secretary of State for Employment what initiatives his Department is taking to encourage people to set up new businesses; and if he will make a statement.
§ Mr. CopeThe main factor which has encouraged people to set up new businesses is the favourable economic climate which the Government have helped to create through their policies of controlling inflation and reducing rates of taxation. The increase in the number of businesses registering for VAT in 1987 was the highest since 1979 and the number of self-employed people has increased by over 1 million since that date.
This Department has a range of policies designed to encourage people to set up their own business and to give direct support where appropriate. The enterprise allowance scheme pays unemployed people an allowance of £40 per week for 12 months while they are setting up a business. Over 360,000 people have now benefited from this scheme, and 110,000 places have been provided for the current financial year.
The loan guarantee scheme also helps new businesses to raise finance and half of the loans arranged through the scheme are for start-ups.
People planning to set up in businesses can obtain information and business counselling from the Department's small firms service and the network of local enterprise agencies, many of which receive support from this Department.
§ Mr. AmessTo ask the Secretary of State for Employment what has been the net increase in the number of new businesses in(a) Basildon and (b) England and Wales since 1983.
§ Mr. CopeBetween December 1983 and December 1987 the number of businesses registered for VAT in the United Kingdom increased by 121,000. Separate figures for this period are not available for England and Wales or Basildon.