The business secretary recently announced that small business bank account holders will soon be given practical aid by the government in the form of a new initiative designed to cut red tape and boost investment, industry experts say.
Vince Cable announced the new Advanced Manufacturing Supply Chain Initiative, a £125 million fund that opened its doors to applications last week. Instead of relying on High Street lenders to provide working capital for developing firms, the government will provide direct support for a selection of products in certain business sectors such as chemicals, automotive, and aerospace, while also targeting newer areas of UK economic growth well situated to become worldwide leaders such as renewable energy and other green technologies.
An additional government campaign was also announced in conjunction with the manufacturing initiative with a focus on regulatory enforcement. Excessive or inappropriate enforcement of regulations will be identified and investigated in order to reduce the impact on business development under the campaign.
The government is committed to clearing any barriers to the development and growth of small and medium sized businesses in the UK, said Mr Cable. This means that the new regulatory review will be committed to lightening the load for businesses that could otherwise work towards transforming the nation’s economy and aiding in its recovery, he added.
Another crucial part of the initiative will be to increase capital supplies through channels that do not rely upon high street banks to provide business loans to deserving businesses. The Business Finance Partnership, a £100 million fund especially seeking to provide credit to SMEs, will target finance channels that circumvent the private sector and its inability to meet small lending targets as demonstrated by its failure to meet its Project Merlin obligations.