Struggling firms handed lifeline

£10m tax delay helps businesses

STRUGGLING businesses across Oldham have been allowed to delay £10 million of tax payments to help them stay afloat.

Businesses make an agreement with HM Revenue and Customs to defer tax bills for several months to help weather the recession.

The scheme was set up last November to help any businesses finding it difficult to pay their taxes.

According to figures from HMRC, 670 agreements have been made across the borough which has allowed £10 million to stay in the local economy.

Across the North-West, £379 million of tax payments have been delayed, and £3.6 billion nationwide.

The figures came as Business Secretary Lord Mandelson said the North had been worst hit by the recession.

He said: “I am concerned that many of the northern regions have been hardest hit by the recession.

“They have become insecure and uncertain about their jobs and future employment. What is vital now is that we continue the support.”

Lord Mandelson praised the work of the North-West Regional Development Agency and said it was vital in the region’s economy.

He said Tory plans to scrap the RDA would result in more concentration on the South.

During the last 12 months, the RDA has given more than £23 million of support to help business across the region start up and Business Link North-West has carried out more than 7,500 free financial health checks.

Lord Mandelson added: “Addressing the north-south divide is very important for Labour as we believe in fair chances and equal opportunities for all.

“It is not inevitable the north- south divide will widen if the South recovers quicker from the recession. That depends on what government is in power and how people vote.”