July 8, 2011
Filed under: FSB — Alan @ 9:05 am
The Independent Commission on Banking led by Sir Jon Vickers is being urged by small businesses to create a playing field that is level for foreign banks so they can enter the UK market.
The Federation of Small Businesses (FSB) says the urge to get new entrants into UK like NBNK Investments and Virgin Money risks overlooking the possibility of the potential foreign competition that could help to ease a very difficult and tough SME environment for lending.
FSB spokesman Andrew Cave said the group has spoken to over six large banks in America, Europe and beyond who have said they would be interested in entering the UK market. However they are put off by certain issues that we think should be looked at by the Independent Commission on Banking.
One of the issues that is quite major is the regulators insistence that overseas banks that want to start a new product here have to hold more capital to support them than those local home grown banks would need.
It therefore makes it easier if an existing bank that wants a new product but a new foreign bank has to hold additional capital in order to underwrite the project. That is no incentive at all for them to come.
Honestly, it seems the regulators trust existing UK banks more and we want this to be considered by the ICB. The FSB says the problem can be solved either by amending the rules so no extra funding is needed by foreign banks or the same is applied to our existing banks.
April 30, 2011
Filed under: FSB — Alan @ 7:58 am
The Federation of Small Business is deeply worried over the Labour’s Assembly Election Manifesto. Their anxiety stems from the lack of concern for small businesses, as reflected in the manifesto.
The Small Business Fortnight bulletin examines the pledges of four parties and the FSB expressed grave disconcert that Labour’s manifesto treated the economy as unimportant. Labour disagrees with FSB’s criticism, indicating that their manifesto is filled with concern and plans to assist small and medium enterprises (SME).
In the end, the FSB applauded each party’s policies as reflecting many of the suggestions FSB had submitted. “We are vexed that Labour has placed special emphasis on large companies and disregarded SME’s. Everyone should be deeply worried that the economy does not place in the top five for them either.”
Labour countered this, “Our plan states that we are dedicated to placing broadband in the hands of all businesses by 2015. We are also planning a special business crime task force to support SME’s. So our support for SME’s speaks for itself.”
“Many Welsh SME’s are benefiting from Welsh Labour’s plan for business rate relief. They are being removed from the paying rates.”
April 14, 2011
Filed under: FSB — Alan @ 7:10 am
Despite the UK’s moratorium on regulation MICRO firms will still not be able to escape the effects of bureaucracy in Europe. For the next three years the government has put a stop on new domestic regulations for small businesses as of April 6.
But red tape that is originating in Europe is a concern of the Federation of Small Businesses (FSB) who says that nearly three quarters of the total costs of UK regulations comes out of Brussels where there has been over 100,000 pages of regulations since 1997 and cost around £109bn each year to businesses around the EU.
Micro firms will continue to be affected by these European regulations; Agency Workers Directive, the Parental Leave Directive and the Pregnant Workers Directive and the Regulation of working time for self-employed lorry and coach drivers. The FSB is pushing the UK government to initiate more change at the European level to stop the flow of additional regulations.
The FSB’s national chairman, John Walker says the moratorium on new regulations in the UK is very important for micro firms. We have welcomed the Government’s commitment to eliminate the burden of regulation but continue to worry about all the regulation coming out of Europe and how it will hit the smaller firms hard and how it will affect their operations.
Without the worry of constant change to the law and more regulations the micro firms can be in a much better position to plan their future, grow, take on new staff, innovate yet is also burdensome knowing that not all of the important aspects of employment regulations do not fall under the moratorium.
April 7, 2011
Filed under: FSB — Alan @ 9:27 am
According to the Federation of Small Businesses the great digital divide between Scotland and other sections of the UK could open if the UK government does not improve the broadband available to employers and residents. In order to increase broadband access, reliability and speed the organization is asking for the political parties of Scotland to work together with the Conservative-Liberal Democrat coalition.
Research conducted by the Scottish government was used to support the body’s demands saying that more than 45% of those that use broadband believe that over the next two to three years they will have to increase the bandwidth. Companies that believe they are going to see substantial growth are twice as likely to sense being held back by the internet connection, than those that only are predicting moderate growth.
In rural areas of Scotland the situation could be even more significant as an Ofcom study highlighted that super-fast broadband access the lowest in remote areas and 3G coverage is also less. Only 17% of the people in these areas own a 3G phone compared to those in towns and cities north of the border where the percentages increases to 27%.
In the digital age, Scotland cannot be left behind, says the FSB Scottish policy convener Andy Wilcox. In Scotland the availability of next generation broadband access is of upmost priority to everyone including charities, schools, universities, consumers, and both public and private sector organizations.
Mr. Wilcox said that the next Scottish government needs to work with Scotland Office and Scotland local authorities to help deliver on this since we cannot start pointing fingers while groups such as businesses, communities and families are not able to hook up to the 21st century’s newest technology.
March 24, 2011
Filed under: FSB — Alan @ 3:02 pm
The Financial Services Board (FSB) deputy director of insurance, Jonathan Dixon, reported in Johannesburg, “Customers should be dealt with evenly and we need a protocol established to ensure it is carried out. There will be a shift in how banks interact and relate with their customers, which requires more direct regulating oversight.”
Customers’ base of security in their relationship with banks will be strengthened through the Treating Customers Fairly framework (TCF). This signifies a change in the culture. It is an endless struggle against companies that are constantly seeking to circumvent these measures, though.
“This is an ongoing struggle that we must push through until we achieve the standard of measures that gives customers back their confidence that we are protecting their rights in the relationship with financial institutions.”
Our initial launch into these new areas requires the FSB to shift from a passive to an active methodology. We must take the initiative before the problems compound. That is what the TCF is all about, but it also determines what our actions will be, rather than waiting for something else to happen first.
“Companies must see us enforcing the restrictions when they are tested. The institutions who flaunt fair treatment of their customers must be adequately punished to reduce the chance of repeating it.”
March 15, 2011
Filed under: FSB — Alan @ 3:35 am
The Federation of Small Businesses (FSB) states the Government need to give added assistance to small business owners and the self-employed. The FSB has requested the coalition Government to reduce business red tape and proposes that tax breaks be offered to small, expanding enterprises willing to employ more staff.
John Walker, national Chairman of the FSB commented that he believed that the Government, through the tax system, should support the self-employed and encourage those with aspirations to be self-employed. During this time when tax breaks are not substantial and are scarce, careful tax breaks should be directed towards those wishing to expand and employ or hire more staff.
He emphasised that accurate and correct taxation is to be paid by all businesses, but HM Revenue and Customs must appreciate, with the extensive taxation book the UK holds, infrequent errors will occur in small businesses, the majority not having Finance Departments. Smaller firms do not have the understanding and skill in bookkeeping and therefore should be given added assistance to keep their files up to date.
February 10, 2011
Filed under: FSB — Alan @ 5:16 am
It is believed that small firms might be aided by the government and through this help the economic recovery. They might do this by removing some of the blockades to both growth and employment.
The Con-Lib coalition is responsible to improve their support of small businesses taking in new apprentices, says the Federation of Small Businesses (FSB).
This group thinks that the smallest businesses should be motivated through incentives to give youth jobs. One way this could happen is by increasing the money that would go toward the program. More than a third of businesses agreed this would help them feel motivated to expand their employment opportunities.
In April this year the ‘Time to Train’ law is set to be enforced. The smaller firms ought to be given exemption from it, so they might hire more employees, proving that Britain is ahead of the pack.
National Chair of the Lobby Group, John Walker, said, “Small businesses place great value in apprentices. When will the government wake up to the fact that their laws inhibit employment expansion along with ignorance and lack of proper advice. This is what is hindering the apprenticeship program.”
“November proved to us that now is the time to act. Well over 950,000 of people under the age of 25 were unemployed.” He also indicated that when budget constrains a business, few of them have the wherewith-all to hire more employees.
“Now you know the reason we are pushing for continued flow of monies to the smallest businesses,” he said.
December 17, 2010
Filed under: FSB — Alan @ 4:58 pm
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Additional jobs, more than 30,000, would be created if the starting point for small businesses paying VAT were increased”, reported the Federation of Small Businesses. Raising the VAT minimum requirement from £70,000 to £90,000 would minimize the VAT bureaucracy, save over £160 million each year, but also reduce VAT payments by £710 million.
From this money over 30,000 jobs could be created. The jobs revenue and the surplus of over £12 billion, from the new 20% VAT, as of January 4, 2011, will compensate for the change in Treasury VAT money.
Coventry chair, Bruce Undy, of the FSB, said that they were requesting the threshold be increased to spare the small businesses, which would be required to pay exorbitant VAT fees. He went on to point out that the government’s commitment to recovery arising from the private sector should make room for small businesses to flourish.
Reinvesting the money saved by small firm from the VAT increase, or hiring new staff, will improve small business growth, according to the Small Business Programme for Growth. Cuts in government spending, as noted in the Comprehensive Spending Review, will go toward recovery, hand in hand with this programme.
The 2.5% hike in VAT will damage the small business and cause the economy to suffer further. Small firms cannot handle the burden of such increases. Consequently, manage will close, placing a further strain on unemployment and a reduction in VAT revenues.
If a business survives it will have to reduce its inventory or pass on the cost to the client. The private sector then will cease to be the tool for recovery and become the albatross around the government’s neck. The latest estimates from the FSB indicate the more than 10% of all firms anticipate reducing their employment in the last quarter.
