SMEs receive growth boost as UK economy expands

The recent news that the UK economy grew by a total of 0.3% in the first quarter of 2013 has been welcomed by economists across the region.


The news meant that the UK narrowly avoided a triple-dip recession and SMEs everywhere will have been buoyed by the figure, particularly as it comes in the week where the FLS scheme has been adjusted to suit their growth prospects as well.


Chancellor George Osborne was particularly effusive about the figures and what they represented for prospects of further growth.


“Today’s figures are an encouraging sign the economy is healing,” stated Osborne. “Despite a tough economic backdrop, the economy is healing.”


Hugely significant boost


Many saw the rise as a hugely significant boost, particularly as it was revealed at the same time as weak figures regarding production output and construction output.


However, not everyone was convinced about how significant the figures might turn out to be. John Longworth, the director-general of the British Chambers of Commerce, feels that more needs to be done to guarantee sustainable growth.


“The government must consider a significant shift in priorities to boost growth within the existing spending envelope,” stated Longworth.


Intriguingly, the government this week announced plans to alter the existing Funding for Lending (FLS) scheme in order to encourage wider spending to SMEs from lenders. Lenders will now be able to draw £5 from the scheme for every £1 which they lend to SMEs in 2014.


Many people would argue that this is exactly the kind of “significant shift in priorities” that John Longworth was talking about when criticising the government’s economic stance. 


Business restructuring specialists


A number of businesses may find themselves in a financially distressed situation in 2013 as numerous economic indicators suggest the remainder of the year could present obstacles for SMEs across the UK.


Seeking advice from a company insolvency specialist could make a crucial difference in terms of how your company deals with the situation, companies such as this can provide practical solutions to numerous financial problems.


If you would like to have a free no obligation chat with one of our advisers please call us on 0207 186 1143.

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