Government urged to do more for medium-sized businesses

News Article - 11 March 2011
Category: Business

The Confederation of British Industry (CBI) has called upon the Government to use its approaching Budget the boost growth and the creation of new jobs within medium-sized companies.

The Government has already revealed its plans to support business growth within its March 23 Budget, with Chancellor George Osborne saying the Budget would be "unashamedly pro-growth, pro-enterprise and pro-aspiration".

Access to capital is regarded as the biggest barrier to growth for many medium-sized businesses and John Cridland, director general of the CBI, is worried the nation's medium-sized enterprises will be overlooked.

"Mid-cap companies are Britain's forgotten army. This is where growth and jobs are most likely to come from," said Cridland.

The CBI has warned that the 50p personal tax rate on the wealthy in the UK is forcing British-based businesses to move their workforce abroad, deterring foreign investors from taking the plunge on talent within Britain's shores.

There is increasing pressure from both the City and medium-sized businesses to reduce the tax rate with numerous sectors reporting a growing number of requests to be posted overseas simply to save money with lower taxation rates.

Mr Cridland hopes the coalition will set out a route map in terms of cutting tax from this year's Budget.

"Mobile talent needs a good reason to do business in the UK. What they want to see is that the 50p rate is not permanent. They need to see that the trend of direction is a downward one," said Cridland.

Despite their fear for mid-cap companies, the CBI has applauded the Government for maintaining its aggressive approach to reducing the national deficit.

In order for medium-sized businesses to manage budgets and react to the market a powerful finance system is required. Access finance and accounting software offers up-to-the-minute management information for 360-degree control and an instant snapshot of business sales, costs and overheads.

Businesses have the facility to set budgets for both costs and revenue purposes that can be profiled regularly for optimum visibility through the lifetime of any working project. This is particularly useful in the current uncertainty over tax burdens where firms must seek to protect bottom lines in order to emerge profitable at all times.

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