HC Deb 30 March 1995 vol 257 c721W
26. Sir Donald Thompson

To ask the Chancellor of the Exchequer if he will make a statement on the progress of measures to help small business announced in his November 1993 and 1994 Budgets. [15302]

Mr. Aitken

The Government have taken action to implement all measures aimed at small businesses announced in the November 1993 and 1994 Budgets. Progress on the main measures is as followsEnterprise Investment Scheme The scheme, announced in 1993 and enhanced in the 1994 Budget, has been implemented with effect from 1 January 1994. Early indications are that, on average, companies are raising £80,000 under the EIS and over 50 per cent. of EIS equity issues involve a business angel. Venture Capital Trusts The necessary legislation is expected to come into force from 6 April 1995 following Royal Assent. Relaxation of audit requirements In August 1994, regulations were introduced exempting most small companies with a turnover of up to £350,000 from the statutory requirement to have their annual accounts audited; companies with a turnover of up to £90,000 may dispense with audit altogether, while the remainder only need a simple report by an independent accountant. Prompt payment A package of measures aimed at improving payment performance in the public sector has now been implemented. The Government are also working with the business community through a CBI working group to develop proposals for a British standard for prompt payment; consulting on the implementation of a requirement on public companies to state their payment policies in their directors' reports and reviewing court systems and procedures for debt recovery. These measures are aimed at bringing about a change in business culture and hence, shorter payment times. Insolvency reform A further consultation paper will be issued shortly. Financial Management Certificate A consultation paper will be issued shortly. Loan Guarantee Scheme A consultation document was issued on 10 March.

Small businesses have also benefited from the various tax measures and refinements announced in these budgets and from the continuation of the scheme of transitional relief to ease the impact of the revaluation in business rates.