Small businesses should get a better deal from credit crunched banks following today’s Queen’s speech.

The facts:

As expected, today’s Queen’s Speech focused on bank lending to businesses and individuals with new rules governing customers’ treatment and new powers given to the Bank of England to help banks meet lending commitments.

The BoE will be allowed to grant short-term lending to high street banks on a private basis, according to the detail of the speech. It means banks in severe difficulty can get help without making it public.

In another Bill to go ahead, councils in England and Wales will be able to add two pence in the pound to rateable values of business premises in an effort to promote economic development in their area.

Under the Skills and Learning Bill, due to be rolled out across England by 2013, children obtaining a good standard of school qualifications will be guaranteed a place on an apprenticeship scheme.

Amendments to the Equality Bill will aim to simplify and harmonise discrimination law to make it easier for small businesses to comply. It applies in England, Scotland and Wales.

Meanwhile the Welfare and Reform Bill will creative new incentives for people returning to work after redundancy and illness. It will also create “sanctions” against those who do not make an effort to get a job.

Applying in England, Scotland and Wales, the Bill forces people who are well and claiming unemployment benefits to attend Job Centre interviews, while people on Employment Support and Allowance will have to demonstrate “work-related activity”.

They said:

"My government's overriding priority is to ensure the stability of the British economy through the global economic downturn," read the text of the Queen's Speech.

"My government is committed to helping families and businesses through difficult times. The strength of the financial sector is vital for the future vibrancy of the economy."

We say:

Once again, the proof of this commitment will be in the pudding. Small businesses will be keeping a close eye on banks' attitudes and will kick up a reall fuss if lending provisions are not relaxed.

Businesses will welcome many of the measures outlined in the Speech included those affecting skills and employment law red tape. However the business rate increase will no doubt stir up controversy.

Keep up with the news as it happens in our dedicated Queen’s Speech section. 

Why not sign up to our small business newsletter and learn more?

Rating

By News Desk  on   Dec 03,2008

Add a comment  |  Add a rating  |  Email to a friend

Keywords

Queen's Speech    banks    economy    politics    Mandelson    small business   

Comments