Deloitte comments on announcements for entrepreneurs in the Chancellor's Autumn Statement
5 December 2012
Debbie Griffiths, entrepreneurial business partner at Deloitte, says:
Consultation to expand the list of ISA qualifying investments
"The additional support for business fundraising will be welcomed, but by how many entrepreneurs is a different question. If it is restricted to the Alternative Investment Market, this will only be of benefit to these listed companies and, therefore, unlikely to be of significance to the broader entrepreneurial community.”
Business Bank to deploy £1 billion and enable UK Export Finance to provide £1.5 billion in loans to finance small firms’ exports
"With financing one of the biggest challenges facing entrepreneurs, moves to support SME funding through the Business Bank is a positive step forward. Deloitte’s 2012 Entrepreneurship UK survey of 416 entrepreneurial businesses found that only 12% see banks as the most likely source of finance to grow their business, down from 20% when surveyed last year. It is hoped this will ease the burden for entrepreneurs, particularly for those relying on cash to fund expansion.
"With respect to small firms’ export finance, there is certainly appetite for international expansion for UK entrepreneurs. Deloitte’s survey also found that over half already export, or are making plans to do so. Presently, 30% export to emerging markets, with a further 29% planning to follow in their footsteps. Additionally, 45% export to traditional markets and a further 20% are considering this option. While the Chancellor’s announcement will guarantee payment for those taking on new markets, it only addresses just one of the many challenges – such as regulatory restrictions – facing entrepreneurs today.”
Increases to the annual investment allowances for plant and machinery equipment
"The 10-fold jump in the plant and machinery allowance from £25,000 to £250,000 is significant. As a result of being able to claim this relief, it may accelerate capital expenditure programmes and provide more cash for investment and fund cash flow requirements of profitable SMEs."
Notes to editors:
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.
Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.
The information contained in this press release is correct at the time of going to press.
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