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Tories bid to help small business Tories urge small business help
(about 3 hours later)
Conservative leader David Cameron has called on the government to allow small businesses to defer paying their VAT bills for up to six months. Tory leader David Cameron has urged the government to allow small businesses to defer paying VAT for up to six months.
Writing in the Observer, he also urged local authorities to pay small businesses for their services within 20 days, rather than the customary 30.Writing in the Observer, he also urged local authorities to pay small businesses for their services within 20 days, rather than the customary 30.
And he said banks must "stop the march to mass insolvencies" and treat small businesses "fairly". And he said banks must treat small businesses "fairly".
Mr Cameron said: "Britain's small businesses need our help." Meanwhile, Chief Secretary to the Treasury Yvette Cooper urged banks and building societies to be more lenient on people who default on mortgages.
Mr Cameron said further Conservative plans to help families, homeowners and entrepreneurs would be laid out "in the coming months".Mr Cameron said further Conservative plans to help families, homeowners and entrepreneurs would be laid out "in the coming months".
He added: "We intervened to prevent the beating heart of our economy - the financial system - from collapsing. We've got to do the same for its lifeblood. He said: "We intervened to prevent the beating heart of our economy - the financial system - from collapsing. We've got to do the same for its lifeblood.
"Small and medium-sized businesses employ over 13 million people and turn over £1,440bn a year."Small and medium-sized businesses employ over 13 million people and turn over £1,440bn a year.
"In the short term, we've got to help families up and down the country with proposals to get them through the downturn."In the short term, we've got to help families up and down the country with proposals to get them through the downturn.
"In the long term, we've got to repair our economy by getting the public finances back in order.""In the long term, we've got to repair our economy by getting the public finances back in order."
Rising repossessionsRising repossessions
Meanwhile, Chief Secretary to the Treasury Yvette Cooper, has called on banks and building societies to be more lenient on home owners who default on their mortgages. Ms Cooper told the Observer there needed to be a more responsible approach to repossessions.
She told the Observer there needed to be a more responsible approach to repossessions.
"We need to do everything that we can to keep people in their own homes," she said."We need to do everything that we can to keep people in their own homes," she said.
The Council of Mortgage Lenders is predicting that the number of homes repossessed this year will reach 45,000, up from 26,000 last year.The Council of Mortgage Lenders is predicting that the number of homes repossessed this year will reach 45,000, up from 26,000 last year.
Ms Cooper said there was "clearly going to be tougher times ahead" and that no government could prevent a slowdown in the light of the current global problems.Ms Cooper said there was "clearly going to be tougher times ahead" and that no government could prevent a slowdown in the light of the current global problems.
But she said: "What we can do is step in and, by dealing with the problems in the banking system, prevent the worst of the credit squeeze hitting people."
But she said: "What we can do is step in and, by dealing with the problems in the banking system, prevent the worst of the credit squeeze hitting people."
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Do you operate a small business? What do you think of David Cameron's suggestion? Send us your comments on the form below.Do you operate a small business? What do you think of David Cameron's suggestion? Send us your comments on the form below.
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