Govt to introduce 'one-click' registration for start-ups

The Government today said it will make it easier for people to set up new enterprises by cutting the time it takes to start a new business.

In its 'The Coalition: our programme for government' paper, published today, it says it will reduce the number of forms needed to register a new business, and move towards a 'one-click' registration model.

It says it wants to make the UK one of the fastest countries "in the world" to start up a new business.

It adds it will promote small business procurement, in particular by introducing an aspiration that 25% of government contracts be awarded to small and medium-sized businesses.

This follows Chancellor George Osborne's pledge last night at the annual CBI dinner to reform corporation tax.

He said the Government would simplify reliefs and allowances, as well as tackle avoidance, in order to reduce headline rates, which currently stand at 28p in the pound.

Osborne and Business secretary Vince Cable today stood united on getting banks to re-open the lines of credit to small businesses, callling it an "absolute priority".

The Chancellor said getting banks to lend to small and medium enterprises was a priority which comes before any planned for restructuring of the financial system.

"It is an urgent priority to get lending to SMEs, an absolute urgent priority.

Business secretary VInce Cable said re-starting the flow of credit was vital as the country begins to recover from the economic downturn.

"The net lending issue is very urgent. The demand for credit is rising as we get into recovery but the supply of funds is not coming forward," said Cable.

The hastily put together document, which comes just over a week after the Lib Dem-Tory coalition government took power, states: "We want the banking system to serve business, not the other way round.

"We will develop effective proposals to ensure the flow of credit to viable SMEs."

"Getting banks lending is seperate from what you do about the structure of banks."

To promote lending, the Government says it is still considering both the Tory idea of a major loan guarantee scheme and the Lib Dem's proposal of net lending targets for the nationalised banks.

Prime Minister David Cameron has called today's policy paper a "full program of reform by a full Government for a full five year term".