Contractors don't usually take advantage of government incentives, but there are a few in the otherwise gloomy budget worth noting, including special loans, funds to encourage women in business, limits on regulation, and improved access to public sector contracts. They're not things you often need--one would have preferred some targeted support--but you might find they come in handy (and it's better than nothing).
''Enterprise: ''Unlocking the UK's Talent''
These measures are part of a large white paper included in the Finance Bill called ''Enterprise: Unlocking the UK's Talent,'' and while it doesn't exactly explore bold new worlds, the white paper does have a few hopeful things to say.
As Business and Enterprise secretary John Hutton says: ''We want more new and growing businesses in the UK and more companies and people acting on their enterprising ideas. The UK’s long-term prosperity lies in unlocking the talent of our small businesses, helping them to grow
Loan Guarantees
For contractors who need loans to finance training or equipment purchases, the Small Firms Loan Guarantee scheme will be increased by 60 million pounds for the coming year. The new budget also allows easier access to this programme for small and medium-sized firms who can arrange loans of up to 250,000.
As analysts for the London-based Federation of Small Business have noted, the Loan Guarantee scheme hasn’t been particularly effective at increasing the amounts that small business can borrow. What it does do effectively is to convince banks to make loans that they otherwise wouldn't make. It could be well worth looking into now that it is better capitalised. The British Bankers Association has welcomed the scheme and confirmed that it will help build new businesses.
Funds for Women in Business
Women contractors will also perhaps appreciate the 12.5 million in additional funds to help them get their businesses started. As is so often the case, the FSB points to problems with access and excessive paperwork in the programme, but an effort is being made to improve it.
Limits on Regulation
The budget also contained plans for a consult on 'radical new proposals' to impose a limit on how much regulation can be imposed by Whitehall departments.
We've seen these proposals in the past, and what we've seen is more regulation on the tax and administration side despite all the official plans and projects to reduce it. Part of this is not the Government's fault: the massive part of our labour regulation comes from the European Union. And the nations on the Continent are accustomed to a vastly higher degree of regulation.
Public Sector Contracts For Contractors
Darling also said he wants to help small and medium firms win more business from the public sector, and plans to give these firms better access to government contracts, and to help them with their cash flow. Darling's goal is for small and medium enterprises to win 30% of all public sector business in the next five years.
No one knows how the implementation of this project will play out, but it is true that contractors just like you and me can win public sector contracts, and there's a lot of money out there for our limited companies. The creation of the special bidding site for the Olympics, for example, has already allowed many small businesses to win part of that lucrative project.
We welcome the increases for the Loan Guaranty scheme and we believe they will allow us to help build more new companies 
British Bankers Association
So, gloomy and boring as this Budget is, there are a few real opportunities in it for contractors. We will be following the various projects and watching to see if contractors succeed in cutting through the red tape and actually building their businesses with their help.
Published: Friday, March 14, 2008
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