Financial help sought for SMEs

The Government should help small- and medium-sized businesses invest more in machinery through 100% capital allowances and a loan support scheme, according to a new report. The report, by the Machine Tools Technologies Association and Oxford Economic Forecasting, suggests the Government should pay part of the interest on loans for capital equipment, to reduce the […]

The Government should help small- and medium-sized businesses invest more in machinery through 100% capital allowances and a loan support scheme, according to a new report.

The report, by the Machine Tools Technologies Association and Oxford Economic Forecasting, suggests the Government should pay part of the interest on loans for capital equipment, to reduce the effective interest rate by 2%.

MTTA president Mike Legg said: `Our SMEs are disadvantaged by a tax system that discourages the retention and reinvestment of profits, and by difficulties they face in raising medium-term finance.’