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Government help small businesses
Skills secretary John Denham has announced that government departments and agencies have been instructed to pay any bills for work done by small businesses within 10 days. The idea is that this will help with much needed cash flow for these companies and the move has been welcomed by the Federation of Small Businesses as a step in the right direction.

Denham also pledged £350m to help small firms put their staff on short courses aimed at increasing productivity and the government will also be in talks with the banks to ensure they continue to support and lend money to keep SME's in business.

Many small businesses have been hit hard as credit has dried up due to the financial crisis. That has prompted the Conservatives to make proposals such as a six-month VAT holiday for small firms, coupled with a 1p cut in national insurance and it has also led several newspapers to launch campaigns on their behalf.

Ministers believe that as well as practical financial help, companies need to be confident that continuing to invest in their business is the right way to survive the tough times ahead.

New business secretary, Lord Mandelson, has promised to help small and medium-sized businesses, so we await with interest to see what measures are offered to give practical support... that will realy make a difference



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