PriceWaterhouseCoopers have welcomed the chancellors plans to introduce a new credit easing scheme for businesses.
For businesses, the availability of finance can be the difference between success and failure, and new government assistance could simplify the process for many.
The plans will also build on the changes in the Budget to increase the availability of equity finance for smaller businesses through incentives like the Enterprise Investment Scheme.
Richard Podd, director at PwC North East commented: “Overall this is a bit of good news: if the Chancellor can make significant sums available quickly at low cost this undoubtedly will have a positive creation and expansion, and it shows that he is listening to business.”
However, Richard did also question how the scheme would work in practice.
He continued: “The questions now will be hoe easy the new finance will be to access, how much is going to be made available and what will be the cost to the borrower.
“Down the line there could be worries around how the Government will deal with the costs of any bad debts – if businesses see that other taxes will have to rise to fund the scheme then the initiative will have less effect.”
He is now calling for the government to look at other areas of business, which could help boost the economy.
“We would also hope that the Chancellor continues to pay attention to other areas where the Government affects growing businesses such as reducing regulation and administration and the impact of the tax system,” he added.