HC Deb 16 January 1990 vol 165 cc235-6W
Mr. Grylls

To ask the Secretary of State for Employment if he will list the actions taken by the Government since 31 December 1988 to encourage small and medium-sized businesses.

Mr. Eggar

[holding answer 15 January 1990]: In 1989 the Government continued their efforts to create and foster a climate in which small businesses can flourish and to provide incentives for enterprise by minimising the burdens of taxation, regulation and red tape.

Last year's Budget raised the small companies' profit limit for corporation tax, the limit for marginal relief and the VAT registration threshold. The Companies Act 1989 enabled private companies to opt out of certain provisions of the Act which are of concern only to shareholders, by means of unanimous written resolutions and the agreement of shareholders.

In November 1989 improvements were announced in the conditions of the VAT cash accounting scheme, widening eligibility for small businesses.

Two booklets promoting good purchasing practice and equal opportunities in Government procurement for small firms were launched—"Think Big, Buy Small", aimed at Government purchasing officers, and "Tendering for Government Contracts".

There was a high level of demand for the Government's services to small firms, showing that they meet a real need.

The services generally are described in the new report "Small Firms in Great Britain" issued by my Department last December. In 1989 the main developments were: The launch of Business Growth Training, a major new package of training available for small business managers and their staff; Improvements to the Enterprise Initiative, including greater flexibility under the Consultancy Initiatives, the relaunch of the Export Initiative, the introduction of the Managing into the 90s programme, and a second Small Firms Merit Award for Research and Technology (SMART). A special Action Guide to the Single Market for the smaller firm was also introduced; and An increase in the limit for loans under the Loan Guarantee Scheme.

In addition the 1989 Employment Act has prepared the ground for the introduction of training and enterprise councils. They will be responsible for the delivery and development of training and other support services for small businesses and will be able to ensure that these meet the needs of local business communities.