Although painting a generally gloomy picture of the state of the UK economy in his November 29 Autumn Statement, Chancellor of the Exchequer, George Osborne attempted to extend an additional helping hand to small businesses.

In terms of measures likely to impact SMEs, in addition to providing further detail on previously announced credit easing plans, designed to increase access to finance for small businesses, the Chancellor outlined plans for a new Seed Enterprise Investment Scheme (SEIS); benefits from which will include 50% tax relief and CGT exemption for one year in relation to investment in start-ups.

Commenting on this, Mary Monfries, partner at PwC, observed that::

"Anything that encourages investment into growth companies has got to be a good thing for enterprise, recognising that this is investment at risk with significant potential upside for the UK economy. Very few venture capital funds are able to invest in pre-revenue companies. Individual investors, of course, need to assess the investment risk for them personally and not just be driven by the tax break - although the tax break does limit the downside."

However, she went on to add that:

"Many 'angel investors' will find it disappointing that there is nothing about making investment into these companies easier (for example the ability to invest in similar types of instrument that a venture capital fund would) - this would potentially have a far greater impact than additional income tax relief."

The Federation of Small Businesses (FSB) cautiously welcomed the measures as a "step in the right direction".

"The FSB is pleased that the Government has enhanced the seed enterprise investment scheme which will offer greater reliefs on capital gains and income tax for people investing in small businesses. This will give start-ups and fledgling businesses the chance to by-pass the high street banks and find alternative sources of finance. "

The Federation continued

"Extra funds for small businesses through the credit easing scheme is also to be welcomed. It should help to decrease the cost of finance for small firms and will hopefully increase the amount of lending to small businesses – especially with today's figures from the Bank of England showing that lending fell in the last three months."

It went on to add:

"However, the FSB has concerns that guaranteeing the loan books of existing high street banks may serve to reinforce their market position. The Government must therefore go further to promote the emergence of alternative forms of finance and greater competition in the banking sector."

Commenting on changes to employment law, including making it easier for small businesses to sack employees deemed to be under-performing, and reducing the health and safety legislation "burden" on British businesses, the FSB stated:

"Measures that will reduce the risk of taking on new staff and increase job creation are welcomed and an overhaul of the employment tribunal system is also a step in the right direction. But with youth unemployment rising to record levels, the Chancellor needs to be more ambitious in incentivising job creation by extending schemes like Work Trials to prevent unemployment becoming entrenched."

It also welcomed the small business rate relief and fuel duty rise postponement announced by the Chancellor, but warned that:

"A 3p rise is still coming and will hit small firms and households in August. The FSB is calling for a longer-term solution that not only takes the volatility out of fuel prices but the politics as well. Small businesses need to be able to know what their overheads will be in six months time and that is why the FSB is calling for a true fuel duty stabiliser mechanism."

The Confederation for British Industry (CBI) was less reserved in its praise for the Chancellor's proposals, describing them as "Plan A plus".

With regard to the credit easing measures, the CBI observed that:

“The National Loan Guarantee scheme is a necessary pre-emptive strike to safeguard bank lending to SMEs. With the pressure on bank balance sheets, this is practical and immediately available help.”