UK government ask banks to help small businesses
In a move which was actually supposed to be part of the multibillion pound rescue package for the UK financial industry the government have asked banks to assist the small businesses many of which are literally dead on their feet. While Alistair Darling has gone public with his appeal on behalf of the small business sector the government have refused point blank to amend current tax regulations to assist in the short term. Unless further funding is made available for the sector there is every chance that we could see hundreds of businesses fail over the next 12 months.
On a separate note for the small business sector it has been confirmed that Barclays Bank has obtained funding from the European Investment Bank's £4 billion small business fund in order that they may increase their current £150 million facility for small businesses. While the actual figure which Barclays Bank has received is unconfirmed it is highly unlikely to be substantial in the current market.
The pressure on the government to assist small companies has been growing for some time and there is real concern that little action has been taken so far, even to delay or eradicate small business tax in the short to medium term. Cash flow is the key and without this many companies will struggle well into 2009.
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