§ Mr. David ShawTo ask the Chancellor of the Exchequer if he will make a statement on the achievements of his Department and his policies in helping small businesses over the last 12 months relative to the previous 12 months; and if he will publish the performance indicators by which his Department monitors those achievements and the statistical results of such monitoring.
§ Mr. DorrellThe Government's economic policies are designed to maintain an environment in which business and enterprise can develop and prosper. The Treasury therefore places a high priority on helping small businesses, and among the specific measures included in the 1992 Budget were
a package worth £480 million in 1992–93 and £590 million in 1993–94 to assist business ratepayers. No business will face an increase in its rates bill for 1992–93 above the rate of inflation; raising the VAT registration threshold in line with inflation to £36,600;reducing VAT penalties;changes to the VAT cash accounting system (under which small businesses with turnover under £300,000 can defer VAT payments until they receive payment of bills owing to them). This is now available to traders who owe Customs and Excise up to £5,000;increasing the limit for small employers making quarterly PAYE and NICs payments (rather than monthly) from £400 to £450 a month;exempting most business assets from inheritance tax, so that family businesses may be passed on without charge; the halving of car tax on new cars, which will benefit many small businesses; andrequiring Government contractors to pay their bills to sub-contractors promptly.Inland Revenue and Customs and Excise officials also continuously review forms, explanatory notices and leaflets with the aim of providing guidance which is easily understood.