GT lobbies for more support for medium-sized firms

CHANCELLOR George Osborne should target enabling medium-sized businesses to fulfil their potential in his Autumn Statement in early December.

That is according to financial and business advisor Grant Thornton UK LLP, is calling on the Chancellor to use the Autumn Statement as an opportunity to announce measures specifically designed to help mid-sized businesses (MSBs) unlock their potential and further boost the UK economy.

Among the measures the firm would like to see introduced is a specialist resource within the Department for Business and Treasury to champion the cause of medium-sized firms. It argues too that an export credit would be helpful too in giving these companies an incentive to embark on international trade in high growth markets.  

GT’s autumn statement survey also confirmed bosses’ support (48%) for a single and dedicated HMRC contact who know their businesses and the introduction of a corporate venturing scheme to boost partnerships and investment.

Of the businesses which don’t take on apprentices, 50% said that a National Insurance Contribution exemption would make them significantly more likely to take one on.

With the trade deficit currently expanding, and government seeking new ways to encourage overseas growth, a third of businesses said that they would be more likely to consider exporting to a new emerging market such as China or India if the exploratory costs qualified for an export tax credit.

Commenting on the findings ahead of Autumn Statement on December 3 , Karen Campbell, head of tax at Grant Thornton in the North West: “Our ‘Agents of growth’ research has already shown that the MSB segment has continued to be disproportionately valuable throughout the downturn, contributing £305bn  to UK GDP in 2013 alone.

“This has been achieved without any targeted government support, and is indicative of the huge yet untapped potential of the MSB segment that specific policy initiatives could help unlock.

“As such, we are continuing to call for personalised account management for MSBs by government and a dedicated team to look at MSB issues, which would provide the focus needed, while also identifying any cumbersome processes that should be removed.

“We know that finance remains a concern for MSBs and again, encourage government explore a provision for corporate venturing which would channel the great cash reserves that are currently sitting on balance sheets, to dynamic MSBs, while also enabling strategic partnerships.

“An ever expanding army of think tanks and business organisations is backing our call for reintroduction of a corporate venturing scheme. This could have significant benefits not only in the UK’s burgeoning tech sector, providing the finance for digital start-ups to grow , but across the other sectors too.”