Government proposes new laws to give small firms better access to finance
PUBLISHED: 09:28 10 September 2018 | UPDATED: 09:28 10 September 2018
New laws aimed at giving small businesses better access to finance have been proposed by the government today.
Currently, having a contract with a larger company can stop smaller businesses securing invoice finance from banks and other investors.
Ministers have said that their proposed laws would help stop larger businesses from abusing their power over smaller firms.
The laws are hoped to provide a long-term boost to the economy, estimated around £1bn.
Kelly Tolhurst, small business minister, said: “These new laws will give small businesses more access to the finance they need to succeed and will help ensure they have a level playing field from which to set fair contracts with the businesses they supply.”
The news comes just a week after a manifesto was announced by the Federation of Small Businesses (FSB) setting out what support they believe small businesses need.
However the plans were met with some scepticism from East Anglian business owners, who said a turnover tax on online retailers would be more effective.