Treasury targets £3 billion in unpaid taxes
The Chancellor also announced in his Budget speech that the Treasury is looking to extend the Funding for Lending programme, which aims to increase bank lending to both firms and homes.
The scheme, a joint initiative between the Treasury and Bank of England, is currently set to run from August 2012 to January 2014, with the target of lending roughly £60 billion.
It works through the Bank of England lending money cheaply to commercial banks, so that the banks can then pass this on in the form of cheap loans to households and companies.
However, the announcement that the Treasury would like to extend Funding for Lending comes after the scheme has been criticised in recent weeks.
Loads of stock of washers, dishwashers, cookers
Ready for immediate delivery
Terms: (Leicestershire only)
Contact: 0116 2166650
Valid until: Friday, May 31 2013
Official figures from the Bank of England itself showed earlier this month that overall bank lending fell in the last three months of 2012, despite the scheme.
This prompted Business Secretary Vince Cable to say it might need to be "adapted", while the Bank of England said the scheme had been slow to take off because the commercial banks had to scrutinise and approve the loan applications.
The chancellor also said in his Budget speech that he was moving ahead with launching a business bank.
The planned business bank was first announced by Mr Cable last September, but the details have still to be released.
Other announcements aimed at boosting business included the following:
Corporation tax to be cut by 1 per cent to 20 per cent in 2015.
Government procurement from small firms to rise five-fold.
Tax relief for investment in social enterprises.
Stamp duty axed on shares traded on growth markets.
Tax avoidance and evasion measures, including agreements with Isle of Man, Guernsey and Jersey, aimed at recouping £3 billion in unpaid taxes,
Comments