20,000 firms allowed to delay tax payments

LONDON (Reuters) - More than 20,000 cash-strapped businesses have been allowed to delay tax payments in the last six weeks, the tax authority said on Wednesday.

HM Revenue and Customs said a scheme, launched in the pre-budget report in November, had enabled firms owing more than 350 million pounds in tax to spread out their payments.

Firms have suffered in recent months as the global financial crisis led banks to cut off credit lines, leaving thousands of firms with cash-flow problems.

"This is providing real help to business across the whole country," Treasury minister Stephen Timms said. "This new scheme is helping businesses to stay open and keep their staff in jobs."