HISTORIC PRESS RELEASE : Enterprise Neighbourhoods – Boosting enterprise in disadvantaged communities [March 2002]
The press release issued by HM Treasury on 28 March 2002.
Chancellor Gordon Brown today took forward the Pre-Budget Report consultation on a series of measures to support small businesses in deprived areas and so create 2000 enterprise neighbourhoods in Britain.
The measures for consultation include:
A Community Investment Tax Credit (CITC), which will stimulate enterprise in disadvantaged communities through tax relief for investment in enterprises in disadvantaged areas. Draft legislation has been published today for consultation;
Improvements to the disadvantaged areas stamp duty relief, which will extend relief for commercial transactions to contracts incorporating 6 or more dwellings and commercial leases – this will encourage investment in residential property and support small businesses who are more likely to occupy leased premises;
Introduction of the VAT flat rate scheme to firms with a turnover of £100,000. 540,000 businesses will be eligible, significantly cutting compliance costs by up to £1000 a year.
Speaking at the TGWU ‘Manufacturing Matters’ conference in Leeds, the Chancellor said:
“The small firms of today are the big firms of tomorrow. I want people in disadvantaged communities to see that the enterprise culture too often restricted to the elite is open to them – not least in high unemployment communities where employment for too long has passed by.
The Government has a special responsibility to remove the barriers that hold small firms back and create a level playing field in which small firms have an equal opportunity to succeed and grow, so we are delivering a more favourable environment with special incentives, particularly in our high unemployment areas, to create 2000 enterprise neighbourhoods across Britain.
Genuine equality of opportunity means that no matter your background or area, no matter your wealth, you should have the chance if you have the talent and initiative to turn your ideas into a successful business – making Britain a more dynamic, vibrant, job-creating, wealth-creating economy.”
