Help for small businesses announced by Chancellor
10 October 2011
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At last week's Conservative Party conference, the Chancellor, George Osborne, outlined how the Government planned help the economy. The two key headlines from the speech for small businesses were plans to ease the flow of credit to small businesses and increase employers' confidence when hiring and firing.

Credit easing

In his speech to the conference, the Chancellor revealed plans to introduce new money into the economy and help small businesses to access finance through a method known as ‘credit easing' or ‘monetary activism'.
He said: "Everyone knows Britain's small firms are struggling to get credit and banks are weak. So as part of my determination to get the economy moving I have set the Treasury to work on ways to inject money directly into parts of the economy that need it such as small businesses."
 
"It could help prevent another credit crunch; provide a real boost to British business; and over time help solve that age old problem in Britain: not enough long-term investment in small business and enterprise."
 
Speaking from the conference, Forum Chief Executive Phil Orford welcomed the Chancellor's commitments to maintain fiscal credibility.
 
"In the sluggish economy, the nation can't afford to borrow more," said Mr Orford, "but the announcement requires greater detail as to the form this might take and how it will free up credit for the businesses that need it." Read further comment on Phil's blog.
 

Unfair dismissal rules

The Chancellor also confirmed plans to introduce a fee for unfair dismissal tribunals and extend the qualifying period for former employees to bring tribunal claims from one year to two.
 
He said: "We respect the right of those who have spent their whole lives building a small business not to see that achievement destroyed by a vexatious appeal to an employment tribunal."
 
"We will double to two years the amount of time you can employ someone before the risk of an unfair dismissal claim. And we are going to introduce for the first time ever a fee for taking a case to a tribunal that litigants only get back if they win."
 
This change to employment law will come into force on 6 April 2012.
 
The Government has estimated that this could save £6 million a year for businesses in the UK by seeing claims drop by around 2,000 a year.
 
The announcement is the latest development in the Government's workplace reforms, which aim to increase business confidence to take on more workers by making it "make it much less risky for businesses to hire people".
 
We will bring you further information about the initiatives via the website and our weekly newsletter as it becomes available. Join the Forum as a free introductory member to stay up to date with all the latest business news. 


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