Government Focuses on Job Creation and Growth
Widening the Scope of the New Enterprise Allowance (NEA)
The government plans a big expansion in the scope of the New Enterprise Allowance. The NEA, designed to help unemployed people start their own businesses, will be available to those who have been claiming Jobseeker’s Allowance for more than six months. The new expansion aims to help create up to 40,000 new businesses by 2013 by providing financial support in the early months of self-employment, access to start-up loans and an expert business mentor to help guide them through the early months of their business.
Additionally, the Government also seeks to update the way information and guidance are delivered to small businesses, with more focus on improving small business performance and growth and a greater emphasis on further and better private sector provisions.
Businesses will benefit from:
- an overhaul of www.businesslink.gov.uk providing online business information and tools tailored to the needs of business.
- A national contact centre to help businesses who cannot find the information they need.
- A network of at least 40,000 experienced business mentors offering advice to existing businesses and people who want to start businesses.
- Business Coaching for Growth, backing high growth SMEs to enable them to realise their potential
Prime Minister David Cameron has said:
It is vital that we ensure businesses, and those people who find themselves out of work but have the drive and desire to set up their own business, have all the advice, support and mentoring they need. Together we can make the years ahead some of the most dynamic and entrepreneurial in our history.”
The Government also seeks to aid small businesses by reducing rates of corporation tax, including cutting the small profits rate from 21 per cent to 20 per cent from 1 April 2011, a regional National Insurance holiday worth up to £50,000 for new businesses, and extended Entrepreneurs’ Relief from Capital Gains Tax from the first £2 million to the first £5 million of gains made over a lifetime.
David Cruicshank
yesMinister News Researcher
