Tax breaks for SME lenders, urges FPB

ALTERNATIVE LENDING options for SMEs would be boosted by tax breaks, according to the Forum of Private Business.

Tax breaks for private lenders and equity investors wold make it easier for SMEs to gain access to finance, the not-for-profit lobby group has claimed.

The FPB wants the alternative lending market to receive a tax boost in chancellor George Osborne’s Autumn Statement next Tuesday. The statement is likely to be a watered down version of the pre-Budget report, which it replaces.

“The forum believes one of the key issues facing the UK economy is a business sector lacking sufficient confidence to invest,” said FPB chief executive, Phil Orford.

“And while the effect of external market conditions is difficult to control, one action government can take is to set out clear financial and regulatory domestic road map in the years ahead. Above all we recommend the government shows consistency, clarity, and certainty.”

The FPB has called for a range of other schemes to be implemented, including: a focus on schools to improve pupils’ employability; help rural businesses receive better banking services; and freeze business rates in April.

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