Brown takes cue from Silicon Valley

The UK Chancellor, Gordon Brown, presented his pre-Budget report to a boisterous House of Commons this afternoon, and came out swinging for small businesses.

Ahead of the full budget next year, Brown said he wants to "remove once and for all the 'them and us' culture" of UK business by "making it easier for all employees to become stakeholders" in their companies.

He said the government's goal is to double the amount of employees in share ownership schemes, in an effort to "emulate Silicon Valley".

With a further nod to the success of the high-tech sector in the US, Brown said he will encourage venture capitalism. To do this, he has asked Don Cruickshank - ex-director general of telecoms watchdog, Oftel and now the head of Action 2000 - to work with banks to see what further steps can be taken.

The Chancellor did not divulge full details of his plans - also keeping the exact level of the minimum wage and other information close to his chest - but said he is considering further cuts in the rate of corporate taxation for small businesses. Also, next April, the Inland Revenue and Contributions Agency will merge and be compelled to oversee advice centres and a national helpline for small businesses as out-of-date book-keeping methods are replaced.

Eight new institutes of enterprise will also be established at UK universities.