By Jonathan London on 31st March 2015

Small Business Act becomes law

The Small Business, Enterprise and Employment Act has been granted Royal Assent.

The act will provide support to entrepreneurs helping to establish a new company. Business secretary Vince Cable has played a key role in bringing forth the legislation in a bid to ensure the UK becomes a leader in the small business sector.

Changes under the Bill include a greater emphasis on prompt payment to small businesses, as well as ensuring they can compete with larger established firms.

There will also be an increase in the availability of financial support to help boost the number of companies being set up and allow greater investment in resources.

Under the new legislation banks will be required to pass on details of small and mid-sized businesses they decline for a loan, assuming the client involved has given permission, to alternative providers who may be able to help.

It is also hoped there will be a reduction in the amount of red tape faced by smaller companies, with the government set to introduce a target for the removal of regulatory burdens.

“Small businesses provide jobs for millions of people across the country and are driving the economic recovery,” explained Mr Cable.

He added: “The Small Business Act will create the right environment for small businesses to continue to thrive by giving them greater access to finance to help them innovate and grow, and make it easier for them to export goods and services made in Britain.”

The bill will also introduce measures to ensure that small businesses do not abuse their position, with rules on minimum wage and zero hours contracts.

Jonathan London Written by Jonathan London

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