The Government wants to make the UK the best place to start, finance and grow a business; and making it easier for smaller and start-up businesses to access finance is one of the Government’s key priorities.

To unlock creativity and entrepreneurial talent in the UK, and encourage more people to invest in new business start ups, the Government has:

• increased the rate of income tax relief for the Enterprise Investment Scheme to 30 percent to encourage more equity investment in start-ups;
• doubled the investor limits to £1 million per year from this April;
• launched the new Seed Enterprise Investment Scheme, which provides 50 per cent rate of income tax relief for individuals who invest in new early stage businesses; and
• from April, for one year only, to kick start the scheme there will be a capital gains tax holiday, so gains can be re-invested into start-ups and be exempted from capital gains tax.

These generous tax breaks will boost investment in small businesses, and help to create strong, sustainable growth in the UK.

Prime Minister David Cameron said:

“It will be new business creation that will drive jobs and success for the future.  I think this agenda is more important than ever when you look around the world and you see how businesses can go from an idea in someone’s brain, a practical bit of work in someone’s garage to a multi-billion pound business in just a few years.  I think that is the exciting potential of what new businesses and business start-ups provide.  The people in this room are absolutely essential to Britain’s economic revival and I hope that it’s recognised that the government is trying to do what it can to help Angels and business investment.” 

Read the full transcript of Prime Minister’s speech and Q&A.

The Prime Minister also posed an open question about angel investment on LinkedIn. The Prime Minister wrote:

“What are the prospects for angel-investing in the current UK economic climate and how can we create more confidence for investors? What should SMEs do to be more successful in attracting investment?”

You can answer the Prime Minister’s LinkedIn question here.

Anthony Clarke, Chair, British Business Angels Association (BBAA) said:

“We are delighted that the Government is supporting the further growth and expansion of the angel investing in the UK through two major new initiatives. The new Seed Enterprise Investment Scheme (SEIS) is a very welcome and, some may argue, a bold move by Treasury, to reverse the shortage of supply of seed investment in the UK and will undoubtedly attract essential new Angel money into the seed stage. The new Angel Co Fund will assist in leveraging significant new capital from angel syndicates, providing much needed new equity funding in the UK’s equity gap between £250k and £2m.

“The challenge remains on how we can double or even treble the numbers of UK angel investors in order to significantly grow the start up and early stage investment market to provide much needed funding to the UK’s innovative businesses. There is a role for the Government to play here in assisting and encouraging a campaign to increase the awareness of individuals to become angel investors to invest in innovative high growth potential entrepreneurs, with a particular focus on encouraging more women angel investors, given the current ratio of nine men for every one angel investor in the UK”. 

 

Business Angels are playing an increasingly important role as a key source of finance for small businesses and for the skills and expertise they offer entrepreneurs to help them to develop and grow. The Government’s priority is to stimulate an active and supportive market for angel investment.

From today, businesses and training providers can bid for a share of £6m from the Higher Apprenticeship Fund, which will support the development of thousands of new Higher Apprenticeships in sectors including aerospace, energy and renewable technologies.

The Prime Minister also opened the bidding for the new Employer Ownership pilot, inviting employers in England to apply to access up to £250m of public investment and secure more control over how skills training is designed and delivered.

He also announced that from this week, small firms will be offered an incentive of £1,500 to hire their first young apprentices. This is expected to support up to 40,000 new apprenticeships over the next year.

Prime Minister David Cameron said:

“I’m delighted to underline our commitment to strengthen our economy by helping employers take on apprentices and ensure that the UK workforce has the skills that businesses need. Under this Government apprenticeship starts are increasing at a record rate, with improvements across the age range, in all sectors, throughout the country.

“By making apprenticeships a gold standard option for ambitious young people, we are sending a message that technical excellence is as highly valued as academic prowess.  And by focusing investment where it is most needed to deliver sustainable growth and offering real ownership of vocational training to employers, we are equipping businesses with the skills they need to rebalance our economy and distribute opportunity more widely.”

 

Writing in the Huffington Post today, the Prime Minister described how apprenticeships are a vital component of government plans to build a highly-skilled workforce.

Mr Cameron wrote:

“Apprenticeships are right at the heart of the kind of economy we want to build: one where many more young people have the chance to learn a proper trade; where we have a highly-skilled workforce; where we’re not just borrowing and spending huge amounts but really earning our way, making and selling the goods the world wants to buy. Apprenticeships are a vital thread running through this vision.”

Skills Minister John Hayes said:

“Clarity of policy and certainty of purpose in Government has delivered a record number of apprenticeships and driven up standards at every level.  We must now go further to create new pathways to excellence for the brightest and best young people and help employers to secure the high-quality skills they need.  Our mission is to put practical training on a level playing field with academic study, creating a highly skilled, creative workforce that can take on the best in the world.”

Data released on 31 January confirms record growth in apprenticeship starts, with some 457,200 starting an apprenticeship in the full 2010/11 academic year.  This represents a 63.5 per cent increase on 2009/10 figures.  Growth took place at all levels of learning, for all age groups, and across all sectors and all regions.  According to the National Audit Office, every £1 of public investment in apprenticeships delivers a return of £18 to the wider economy.

Recent reforms to the apprenticeships programme include measures to raise quality standards, cut bureaucracy for employers and deliver more advanced training at ‘A’ level equivalent and above. 

Over the past eighteen months we’re put a massive amount of effort and investment into strengthening Apprenticeships in this country – and it shows. Last year more than 450,000 people started an Apprenticeship, roughly the same number as those who started in higher education. The increase on the previous year is a whopping 63 per cent. These are record numbers to reflect a real commitment.

 

The reason for that commitment is simple – Apprenticeships are right at the heart of the kind of economy we want to build: one where many more young people have the chance to learn a proper trade; where we have a highly-skilled workforce; where we’re not just borrowing and spending huge amounts but really earning our way, making and selling the goods the world wants to buy. Apprenticeships are a vital thread running through this vision.

 

So we have massively increased investment, to over £1.5 billion – and today we announce three more important steps we’re taking.

 

First, we’re opening the second round of bidding for the Higher Apprenticeship Fund. This fund has a very clear purpose: to increase the number of apprenticeships available at the highest level. For far too long academic subjects have been elevated above practical learning and these rigorous, well-respected qualifications – equivalent to a traditional degree – are going to help end that imbalance. We’re looking to see new higher-level Apprenticeships in fields like engineering, aerospace and renewable technologies, and to that end we’ve got £6 million of funding available. Now we want businesses, universities and training providers to start putting their bids together to make this a reality.

 

Second, we’re launching new incentives to encourage small businesses to take on apprentices. The benefits of doing so are proven and overwhelming: you get loyal staff; you train them as you wish; and you recoup your investment rapidly. You just need to look at the board of Rolls Royce – where half of them started as apprentices – to see the business case for doing this. But still, not enough small businesses go this route, which is why we’re offering new financial rewards. From today, if you’re a small or medium-sized business without any apprentices, and you hire one aged 16-24, then you’re eligible for £1500. So if you’re reading this and you fit the bill, get hiring – there are 40,000 payments to be snapped up. Find out more about it here.

 

Third, we’re giving employers more control over training. Instead of mainly streaming the money through training providers we’re going to give it straight to employers, putting them in the driving seat to commission or develop their own training. There is £250 million in the pot to achieve this – and today we’re detailing how employers can get a share of this and get the skills they need. Read more about how to bid here.  

 

If we want an economy that is truly world-class, high-skilled and open for everyone willing to work hard, then we have got to keep putting our efforts into strengthening apprenticeships with bold measures like this. That’s what this government is pledged to do.

• Cabinet Office SRP progress report (pdf, 92kb)
• Department for Business, Innovation and Skills SRP progress report  (pdf, 121kb)
• Department for Communities and Local Government SRP progress report  (pdf, 106kb)
• Department for Culture, Media and Sport SRP progress report  (pdf, 99kb)
• Department for Education SRP progress report (pdf, 94kb)
• Department for Energy and Climate Change SRP progress report  (pdf, kb)
• Department for Environment, Food and Rural Affairs SRP progress report (pdf, 122kb)
• Department of Health SRP progress report 2011  (pdf, 86kb)
• Department for International Development SRP progress report  (pdf, 112kb)
• Department for Transport SRP progress report  (pdf, 90kb)
• Department for Work and Pensions SRP progress report  (pdf, 110kb)
• Foreign and Commonwealth Office SRP progress report  (pdf, 141kb)
• HM Revenue and Customs SRP progress report  (pdf, 84kb)
• HM Treasury SRP progress report   (pdf, 226kb)
• Home Office SRP progress report  (pdf, 157kb)
• Ministry of Defence SRP progress report (pdf, 103kb)
• Ministry of Justice SRP progress report  (pdf, 97kb)

The publication of these monthly reports promotes transparency and accountability across Government and allows people to check that departments are meeting their commitments.

The Prime Minister launched the draft Structural Reform Plans in June last year and published updated business plans for each department in May 2011.

The Structural Reform Plans are the key tool of the Coalition Government for ensuring that departments are accountable for the implementation of the reforms set out in the Coalition Agreement. 

• Ed Davey MP to become Secretary of State for Energy and Climate Change

• Norman Lamb MP to become a Parliamentary Under Secretary of State at the Department for Business, Innovation and Skills

• Jenny Willott MP to become an Assistant Government Whip.

The Prime Minister wrote:

Thank you for your letter informing me of your decision to resign from the Government. I believe you have made the right decision under the circumstances.

You have made a very significant contribution to the Government, of which you can be justly proud.

 

You were a member of the team which negotiated the formation of the Coalition Government between the Conservative Party and the Liberal Democrats in those crucial days after the General Election, with our shared commitment to come together as two distinct political parties and govern in the national interest.

 

As Secretary of State for Energy and Climate Change, you have led the Government’s efforts to live up to its responsibility to tackle climate change with great passion and distinction.  You played a key role in securing the progress made at the Cancun and Durban summits, and I pay tribute to the leadership you showed at both.  You have been determined to deliver on our pledge that this should be the greenest Government ever, recognising that cutting carbon emissions is not a luxury but a necessity. And you have relentlessly championed green growth.

 

Thank you too for the important contribution you have made as a member of the National Security Council since its inception, not only on security of our energy supply, but also in our discussions on Afghanistan, and during the Libya campaign.

 

Like the Deputy Prime Minister, I am sorry to see you leave the Government under these circumstances and wish you well for the future.

 The Prime Minister was responding to the letter of resignation written by Chris Huhne:

This letter is to submit with much regret my resignation as Energy and Climate Change Secretary.  I intend to mount a robust defence against the charges brought against me, and I have concluded that it would be distracting both to that effort and to my official duties if I were to continue in office.

It has been an honour to negotiate and then serve in the first coalition government of modern times which has substantial achievements both in reducing the economic dangers faced by our country, and in making progress with policies to tackle climate change and provide energy security.  Internationally, we have helped to build a coalition of ambitious countries in Europe and beyond to put the United Nations process back on track.

 

It has been a privilege to be a minister in the coalition government, and I wish the administration every success with the environmental and economic challenges that lie ahead.

Dr. Anthony Seldon, who has been leading on the improvements to the site,  introduces the History section and is joined this month by Professor George Jones, Dr. Andrew Blick and Professor Kevin Theakston with in-depth articles on Prime Ministers and Cabinet Secretaries.

New features include the virtual tour of the state rooms which has been enhanced to bring more information about the rooms to life.  This includes a ghost story in the Small Dining Room, an interview with the Number 10 gardeners  and art slide shows for the Cabinet Room, White Room and State Dining Room.

More content will be added throughout 2012, including an enhanced oral history programme and a partnership with the Government Art Collection bringing more of the historic art pieces held at Number 10 on-line.  

The extra summit was called to discuss growth and competitiveness.

Following the meeting, the Prime Minister spoke at a press conference:

“My message to other leaders was clear. We’ve got to be bold and decisive. EU action should match the ambition that we are showing back at home. So it’s a step forward, I believe, that we agreed today to accelerate the legislation that will do the most to generate growth; to consider a clear plan at our March summit to cut red tape; to remove barriers in trade to services right across the EU; and to make it easier to do business online.”

Prime Minister:

Thank you.  It’s a pleasure to welcome my friend President Karzai to the United Kingdom again, and also back here to Chequers.  We’ve had very good discussions this morning about progress in Afghanistan, progress towards 2014 and 2015, and all that we are doing to try to help ensure a strong, peaceful, democratic unitary state of Afghanistan.  And the strong relationship between Britain and Afghanistan is evidenced by the long-term partnership that we’ve just signed.  Obviously Britain has paid a very heavy price fighting the insurgency in Afghanistan and tragically we’ve lost another soldier from the Yorkshire regiment recently and my thoughts and the thoughts of everyone in Britain will be with the family of that soldier for the loss that they have suffered.  

But I do believe in Afghanistan that we are making progress, first of all on the ground.  The level of violent incidents is down across the country, it’s down very sharply in Helmand Province where Britain has played such a strong role.  The build-up of the Afghan National Army and Afghan Police Force is very much on target and that is going to be one of the keys to the future stability and security of Afghanistan.  We also want to have a long-term relationship with Afghanistan long after our combat troops have come home and that will happen at the end of 2014.  We will have a long-term relationship that will be based on the friendship of two sovereign nations.  That will be a relationship about diplomacy, about aid, about trade, about investment and about very strong two-way diplomatic ties and conversations like we’ve been having today.  

I think part of achieving that is not just what we are doing on the ground in Afghanistan with all the NATO partners, not just the long-term discussions that we’ve been having but also the need – as the President and I have often spoken about – for a political process that ensures that all Afghans, if they give up violence, if they give up terror, can play a part in a strong Afghan democratic, constitutional state for the future.  That is something that needs to happen to make sure there’s a strong, successful, stable Afghanistan for the future, which is in all out interests and that we have been working towards for so long.

 But, Mr President, you’re very welcome here today and I’m delighted we’ve been able to sign this long-term partnership agreement.

President Karzai:

Thank you very much Mr Prime Minister.  As always, a great delight to be here in the United Kingdom and for you Mr Prime Minister to be gracious to invite us on a Saturday to Chequers. This is my second visit and one that I’m always looking forward to repeating in Britain.

 Today’s signature of the long-term partnership between Afghanistan and Britain is one more step, Mr Prime Minister, towards the commitment of the United Kingdom towards Afghanistan and into the long-term.  Mr Prime Minister, Britain has been Afghanistan’s steadfast friend in the past 10 years in particular.  Rightly, as you referred to, Britain has sacrificed in terms of blood and treasure in Afghanistan.  The Afghan people appreciate that, respect that and remember that.  Built on that foundation, the signature today of the agreement between us towards long-term relationship, will take us into a future where Afghanistan will benefit from the assistance and cooperation and help of Britain towards becoming a fundamentally strong democratic state free of terrorism and economically better off.  

 Mr Prime Minister, through you may I convey to the people of Britain the gratitude of the Afghan people for all that Britain has offered to Afghanistan, for having been ready to sacrifice and having been ready to share Britain’s hard earned tax-payers’ money with Afghanistan for the betterment of the Afghan life and for a better, more secure region and in consequence the entire world.  Mr Prime Minister, a great honour to be here today and thank you for being so nice to receive us here and for the partnership that we just signed.

Question (ITV News)

Prime Minister, on Afghanistan, the French have announced that they are going to withdraw combat troops early.  Is Britain tempted to do the same?  Could we see more troops coming out by 2013?  

Prime Minister:

Well, first of all on Afghanistan, all of the NATO partners, all of the countries involved in Afghanistan have signed up to an agreement that we will take our combat troops out of Afghanistan by the end of 2014, but we will continue after that to have a long-term partnership and relationship with Afghanistan because it’s in the interest of the whole world to have a safe and stable Afghanistan that is free from the terrorism that did so much damage to our countries in the past.  

Now obviously, between now and 2014 there will be opportunities for different countries to reduce their numbers.  Britain has herself reduced our troop numbers over the last year.  I don’t want to see some sort of cliff edge in 2014 when all the remaining troops come out at once but clearly between now and 2014 the rate at which we can reduce our troops will depend on the transition to Afghan control in the different parts of Afghanistan.  And that should be the same for all of the members of NATO who are all contributing and helping towards a strong, stable, peaceful Afghanistan which is in all our interests.

President, I think there’s a question from the Afghan press.

Question

Thank you Mr Prime Minister.  We are getting close to 2014 and as you know, the transition is in progress in Afghanistan.  What’s your message for the people of Afghanistan?  And your commitment after 2014?  Thank you.

Prime Minister

My message to the Afghan people is that we want what you want, which is a strong, safe, stable, democratic Afghanistan living in peace and stability with its neighbours.  We want that country to be run by the Afghans, for the Afghans, with an Afghan army and police force to provide that security and that stability.  That is what we hope to achieve between now and 2014.  But let me be clear, after our combat troops have left in 2014, there will still be a strong relationship between Britain and Afghanistan; a relationship based on diplomacy, based on trade, based on our continued aid programme to help the Afghans build a stronger country because it’s in our interests just as it’s in your interest to make sure that the future Afghanistan is democratic and stable and free of the terror of the past.  Those are our aims.  They don’t go any further than that; that is what we’re in Afghanistan to help deliver and that is what we believe we can deliver by the end of 2014.

Thank you very much.  Thank you.

President Karzai

Thank you ladies, thank you gentlemen.

Mr Cameron said:

“Last year I had the privilege of meeting an extraordinary, courageous woman.

Trude Levi was just twenty when she was ripped from her family.

She was forced on a journey that can only be described as hellish, through concentration camps, work camps and death marches.

 

 

She saw and suffered some unspeakably evil things, but she survived to tell her story and pass it on to the next generation.

 

It is so important that stories like Trude’s continue to be heard, and read, and spoken about.

That way the brutal truth of the Holocaust can never be dimmed.

 

And that is why Holocaust Memorial Day matters so much.

 

It is about keeping the truth alive, guarding against prejudice in all its forms and above all, showing respect to those who were killed and those who survived.

 

And as we reflect on this part of our history – and all the millions killed through genocide – we must not forget the persecution and hatred that exist today.

 

We’ve got to learn from the past to improve the ways things are now.

 

As Trude said, we must “remember the beauty of this world and ensure we do everything we can to safeguard it.”

 

So I want to thank everyone involved in marking Holocaust Memorial Day, not just for keeping those memories alive, but for building a better future.”

 Watch the video below: