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PRE-BUDGET REPORT: Darling demands banks back small businesses

Prime Minister Gordon Brown and Chancellor of the Exchequer Alistair Darling have unveiled measures to ensure banks support small businesses.

In one of the most eagerly anticipated Pre-Budget Reports revealed this afternoon Alistair Darling said £7 billion of measures will support businesses.

The £7 billion is made up of £1 billion in tax cuts, £2 billion in loan guarantees and £4 billion from the European Union.

The following measures will be introduced:

* A special £2 billion loan guarantee scheme will see the Government underwrite 75 per cent of the risk when banks lend to small firms.

* A 1p rise in the small companies rate of corporation tax planned for April will be delayed at least a year.

* Revenue and Customs has been ordered to give small firms extra time to pay their tax bills.

* Empty commercial property tax relief to be extended to large firms, now covering around 70 per cent of currently vacant buildings in the UK.

Click here for a full summary of the Pre-Budget Report 2008.

Related News:

PRE-BUDGET REPORT: CBI calls for Govt support for small businesses