The small savings that will be made by replacing innovation grants for loans are a false economy that threatens to stall the growth of small businesses across the UK.
Commenting on how the Autumn Statement will affect the UK’s start-ups and small business community, Bivek Sharma, head of KPMG Small Business Accounting, comments:
“The small savings that will be made by replacing innovation grants for loans are a false economy that threatens to stall the growth of small businesses across the UK.
“Such foundation capital is particularly vital to start-up tech businesses and those that need to invest in building their intellectual property before they can turn a profit; exactly the kind of businesses we need to build a sustainable economy and compete on a global stage.
“The alternative is debt - and we shouldn't be saddling businesses with additional outgoings when cashflow is inevitably tight in the early stages of their lifecycle.”
David Bywater, KPMG Tax Partner added:
“Whilst it is evident that the Chancellor is seeking to create a supportive ecosystem for the UK’s growing SME army, there was nothing in his statement today that will leave them with anything real to celebrate.
“News of expanding enterprise zones into rural areas will be helpful and a low cost way for the Chancellor to show commitment to the SME community. However, the success of many of the existing enterprise zones is still largely untested.
“With devolution of power to local mayors and local authorities for their business communities in the future it will be down to businesses to make sure they engage better with their local councils and other stakeholders such as the Local Enterprise Partnerships in order to make sure their business environment and infrastructure works for them.
“Some sectors did better than others as the Chancellor announced (again) funding for small house builders, recognising the integral role they play in the supply chain in order to get these thousands of new homes built. Plus any SME involved in moving goods around the country will be rejoicing today with the news of a quarter of a million pounds being spent on easing Operation Stack on the M25 and of course, the pothole fund.”
For press enquiries, please contact:
Katy Broomhead, KPMG Corporate Communications
Tel: +44 (0)207 694 8773
Mobile: +44(0)782 453 7963
KPMG Press Office:
Tel: +44 (0) 207 694 8773
KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 12,000 partners and staff. The UK firm recorded a turnover of £1.9 billion in the year ended September 2014. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 162,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.