The Chancellor Alastair Darling has pledged to invest in small to medium enterprise as part of a plan to ensure future growth for the UK economy.
Outlining his budget for 2010/2011, Darling stated he would ensure that banks make £94 billion in credit available to small businesses, and to form a credit adjudication service to investigate claims and mediate disputes between banks and businesses.
He also pledged to increase the proportion of government contracts available to small business by a further 15 per cent, he reinforced Gordon Brown’s aim to bring high speed broadband to 90 per cent of the UK population financed by a 50p monthly phone tariff, and offered to help the UK games development industry, although no details were specified.
However, many of these stimulation measures were to be financed by continued Government borrowing.
The opposition leader David Cameron called the proposed measures “pitiful” saying that it was full of “ticking tax bombs timed to go off after the election”, and called for tax breaks financed by a reduction in Government expenditure.
“Labour made a mess of the economy and is doing nothing to clear it up,” Cameron told the House of Commons. “More businesses and people went bankrupt during this recession than ever before.”