P4
Introduction
During this assessment we are aiming to explain outline the role of government in creating the business climate.
The role of government: * The government want to create an environment in which business thrive. This is because create wealth for the nation as a whole and propel who live there. * The UK government makes law that apply to everyone in the UK but also has to abode by EU directive agreed areas, such as employment right, product safety and competition.
The role of local government: * Every area in the UK has a local council, City or county council cover a large area where district or borough councils operate in smaller communities. * All councils want their area to prosper and so have economic development plans to tempt businesses to relocate or start up in their area. * They promote their own area and give advice about grants and other incentives to attract new businesses. They also have legal powers to take certain actions for the benefit of the local community.

How does the government affect small business?
Taxes
The government has a number of effects on the start-up and operation of businesses of any size, but the most apparent effect the government has on small business is, perhaps, in the form of taxes. Tax breaks for corporations and business losses seem attractive, though they are quickly diminished when the business becomes highly profitable
Grants and Loans
Some of the taxes collected from small businesses