Wednesday 21 March 2012
Commenting on the announcements made by Chancellor George Osborne in today’s Budget, Stephen Cooper, partner at KPMG, says:
“One of the biggest challenges for manufacturers recently has been the availability of funds to sustain and drive their business, so the announcement of a £20 billion loan guarantee scheme is welcome news. It’s certainly a positive initiative, but how smaller companies will access the funds is the critical issue. Time will tell whether or not this scheme is a success, or whether it merely cuts the rate of interest for those with the capability to borrow.
“The Chancellor’s decision to reduce corporation tax is also a great step towards showing the world that Britain is open for business. Compared to the US, France, Germany and Japan, the staggered reduction means that we are a better place to do business and this will only serve to encourage foreign manufacturers to base themselves on our shores. Whether it makes a difference to smaller and struggling SMEs is, of course, open to question.”
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