Autumn Budget 2021: Good day for SMEs as costs are cut and access to finance is bolstered
Posted on: November 1st 2021 · read
It was a good budget for the UK’s SMEs as business rate relief and bolstered access to financing should help them through the winter
Although the Chancellor did not focus on SMEs much in his speech, they can be content that he looked out for their interests and took steps to keep funding flowing their way. The budget delivered small and medium sized enterprises a boost today, at a difficult time when they’re grappling with price rises, labour shortages and supply chain issues.
Key to this is the Business Rates relief which will benefit several industries and really help at a time when costs, such as gas and electricity, are spiralling. However, two other measures are also worth noting. The extension of the Recovery Loan Scheme for another 6 months until June 2022 will allow lenders to support businesses still struggling to access traditional funding due to the pandemic or other issues.
Equally, the £1.4bn across the spending review period allocated to the British Business bank (BBB) is especially useful support for regional funds, such as the Regional Angels Fund. Throughout the pandemic we have seen these regional funds play a key role in supporting businesses that are in a place in-between traditional lending and requiring equity. As they are regional, their knowledge of the local market has been key in offering support to businesses that wouldn’t have been able to access the funds they needed otherwise, and the budget ensured they have the money to continue their good work.”
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