Business group says medium-sized businesses must be nurtured
The Confederation of British Industry (CBI) has called upon Chancellor George Osborne to support medium-sized businesses in the coming Budget.
Access to finance and competitive banking are the key to improving growth for small and medium business, said the CBI, along with help for meeting high energy costs. In previous months, research by the business group has shown that businesses employing between 50 and 499 people, with a turnover of £10 million to £100 million, are key to economic recovery.
John Cridland, director general of the CBI, said: ‘We need to nurture the UK’s vibrant alternative finance market and encourage even more competition in banking so that businesses can get growth capital’.
He also proposed that tax incentives be introduced to encourage investors to hold a stake for more than five years, adding: ‘Many smaller firms say they would be more likely to use equity finance if the investment was longer-term, which is why we want a tax incentive to encourage this’.
The Budget speech is due to be delivered on 19 March.