-- Freeze in tax payments for local business is preventing job losses
-- UK Government tax support for industry and jobs will continue

Ann McKechin, Labour MP for Glasgow North, today welcomed the Pre-Budget Report and the Government’s continuing support for small businesses.

The 2009 Pre-Budget Report extended the freeze in the rate of corporation tax paid by small businesses, while maintaining a raft of measures to support small businesses through the recovery.

The tax support has helped protect vital jobs.  Without it, many small businesses facing tougher times on the high street would have been forced to cut jobs to pay the bills.

Ann said:

“I welcome the extension of the tax rate freeze for small businesses, the ongoing action to encourage lending by banks and other measures, like the help with deferring tax bills.

“These measures will make a real difference to small businesses and those who depend on them in Glasgow.

 "The Labour Government's tax freeze for local businesses, along with other fiscal stimulus measures, like the cut in VAT, has helped prevent businesses from going under.”

The Pre-Budget Report:

• announced that the lower rate of Small Companies Corporation Tax would remain frozen for another year until April 2011. This will save £500 million for 850,000 small and medium-sized companies across the country, supporting them during the recovery.

• announced that the Prompt Payment Initiative would continue. The scheme has ensured almost £73 billion of payments are made within a 10-day target since June  2009, helping businesses to plan their cash flow.

• confirmed that the Business Payments Support Scheme would continue as long as it is needed. The scheme has helped more than 160,000 companies employing over 1.2 million people to defer paying more than £4 billion in tax. 
  
  In Glasgow City alone, 1,950 companies have directly benefited from the tax holiday, saving them £46 m in tax bills through the Business Payments Support Scheme.  And in Scotland it has helped 15,260 companies to defer £278 m worth of tax, helping to prevent redundancies and support the continuation of thousands of jobs all over the country.

• confirmed that the Enterprise Finance Guarantee, which helps small businesses to access finance, would continue for another year. Offers totalling £1 billion have been made to 9000 SMEs nationally.

There's much more information available in the full Listening Panel briefing from Ann McKechin MP on actions the UK Government has been taking to provide real help to people and local business during the recession - real help when people need it most.