Govt 'should do more' to help SMEs go green

16/08/2010

The UK government should expand the current loan scheme for small and medium-sized enterprises (SMEs) and provide incentives for firms to make their buildings greener, it has been suggested.

Large numbers of SMEs want to go green but they need financial support to do so, according to a new report from the Federation of Small Businesses (FSB).

Most SMEs realise the benefits of green investment but they disregard it because of the upfront cost, the FSB has said.

John Walker, national chairman of the FSB, said: "In order to achieve the tough targets set by the government, it must ensure that it makes economic sense for the UK's 4.8 million small firms to go green.

"Small businesses can play a huge part in the UK's fight against climate change and we urge the government to harness this potential when it publishes its Energy Bill, expected later this Parliament."

Recently, Tim Campbell from the Bright Ideas Trust, said the upcoming VAT increase could have a long-term effect on small businesses as many SMEs will have to change their pricing structure, making them less competitive.

Posted by Emma Noble