Somerset Lib Dems Welcome Small Businesses Action Plan

4.07.36pm GMT Tue 28th Oct 2008

LIBERAL Democrats in Somerset have backed plans to help small businesses survive the looming recession.

The plan by the party to boost businesses was launched by leader Nick Clegg and the party's Shadow Chancellor Vince Cable. The plan includes:

· a substantial cut in interest rates to lower the cost of loans and investment;

· immediately overhauling the Small Firms Loan Guarantee Scheme to improve government support for business loans;

· banks which receive government financial assistance adopting a new code of conduct on rearranging business credit and overdrafts;

· developing with energy companies an assistance package for small businesses struggling with high energy bills

"Small businesses are the lifeblood of the economy here in Somerset," said Cllr Alvin Horsfall, Portfolio Holder for Economic Regeneration. "It is vital that we give them a fighting chance to get through the recession.

"The government has given a massive bailout to the banks. But ministers must now look at the bigger economy. Small businesses here in Somerset, and throughout the country generally, are suffering from the downturn. Profits are being squeezed and jobs are at risk.

"A big cut in interest rates will be a big boost to many local businesses and could mean the difference between staying open or closing down.

"Nick Clegg and Vince Cable have taken the lead with their plan to help businesses and I am giving it my full backing."

I shall be visiting businesses in Somerset to discuss local concerns about the economy.

ENDS