Chancellor Alistair Darling has revealed in his Budget speech that investment allowance for small firms is to be doubled to £100,000.
Business owners will also benefit from a cut in rates for a year from October and the tax deferral scheme, which allows companies to delay their tax payments, will be extended for the whole of the next Parliament.
Mr Darling has ordered state-funded banks RBS and Lloyds to provide £94 billion in small business loans, and will create a new credit adjudication service for business owners to use if they feel they have been unfairly rejected for a loan.
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