How the government could really help SMEs

The Chancellor is missing a free opportunity to inject UK businesses with badly needed credit and to give a long-term boost to our entrepreneurism - both of which will help us out of his hole.

The government should permanently and immediately increase its payment terms on VAT and payroll taxes for small & mid-sized businesses.

The effect is huge - adding just six months would boost Conosco's working capital by 10% of annual turnover, more than doubling it. I would give longer to the smallest companies whose finances tend to be more fragile.

This could also transform the financing of new business startups, at a time when they are a way back to employment and when more and more of the world is competing with us.

Best of all, the move wouldn't cost much compared to his other measures, doesn't remove moral hazard and doesn't need any new mechanisms.