In today’s 2013 Spending Review, chancellor George Osborne announced a range of government cuts, totalling £11.5bn.
Along with a focus on public sector wages and affordable housing, there were some announcements which will affect small businesses.
The chancellor announced a 6% budget cut for the Department of Business. However, this will come with a 9% increase in capital investment by the department.
Many business groups have expressed their disappointment in the news that investment in a new economic growth fund will be lower than expected. Earlier this year, Lord Heseltine recommended a £49bn investment in the Single Local Growth Fund, but the chancellor announced today that this will in fact consist of £10bn over the next five years.
However, the Federation of Small Businesses (FSB) welcomed the chancellor’s approach. Mike Cherry, national policy chairman for the FSB, said “It is good that the Government has taken a long term view of how to plan capital spending to the end of the decade. The FSB said in its submission that a longer-term view needed to be taken. However what we now need is a clear timetable for delivery.”