The Chancellor confirmed a new credit easing programme earlier today, which will underwrite up to £40bn in low-interest loans for small to medium sized businesses (SMEs).

Osborne also announced an initial £1bn would be made available through a Business Finance Partnership which will invest in SMEs through non-bank channels.

The plans were well received by the Food and Drink Federation, which described Osborne’s speech as “pro-business, with a clear focus on growth”.

Welcomed

Terry Jones, FDF Director of Communications, said: “SMEs have repeatedly highlighted their concerns about accessing finance and we are pleased to hear the proposals for credit easing that should enable many of our small businesses to expand, pursue new export markets and create jobs.

“The move to remove much unnecessary red tape is likely to be welcomed by the industry and we await details of where this will apply.”

Food firms have been particularly concerned about increasing regulation on Employment, according to Jones. “So plans to exempt small employers could potentially give them confidence to consider creating new jobs,” he added.

The government’s decision to cancel January’s planned 3p rise in fuel duty, in favour of an increase limited at 2p in August, was also welcomed by food firms.

Jones said: “We are already pushed to the hilt on commodity prices and escalating energy charges so the freeze on fuel duty will ease difficult operating conditions for the industry.”