§ Mr. David ShawTo ask the Chancellor of the Exchequer if he will make a statement on the results of(a) his policies and (b) his Department in helping small businesses over the last 12 months as against 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. [34691]
§ Mr. JackThe Government recognise the importance of the small firms sector and are firmly committed to supporting it. Policy centres around providing the right environment in which small firms can succeed by creating a favourable economic climate with low inflation and stable1270W interest rates, reducing administrative and regulatory burdens and providing direct assistance where required.
Specific examples of measures to help small firms, announced in my right hon. and learned Friend's last Budget were:
- reduction in employers national insurance contributions to make it cheaper to take on new staff;
- an extension of the existing scheme of transitional arrangements to ease the impact of the revaluation in business rates;
- enhancements to venture capital trusts and the enterprise investment scheme to promote investment in growing firms;
- consultation on the development of a financial management certificate and a review of the loan guarantee scheme to widen small firms' access to finance;
- various measures to reduce the burdens on small businesses, including consultation on a move to annual VAT returns and payments for small businesses and a simplified scheme of VAT accounting for small traders, closer alignment of national insurance contributions and income tax, an increase in the VAT registration threshold and a reduction in the penalty for failing to register for VAT.
The White Paper announced in May 1995 outlines a programme of measures to assist the growth and competitiveness of the small firms sector.