September 11, 2011
Filed under: Small Business News — Alan @ 7:20 am
The National Chairman of the FSA, or Federation of Small Businesses, has urged the Prime Minister not to water down the proposals that have been made for bank reforms. John Walker has written an open letter to David Cameron, urging him to carefully consider the findings in the ‘Independent Commission on Banking’ report, which is due to be published.
The report has pledged to reform both the structure and the regulation of the banking system, but Mr Walker believes that the Government many ignore the report’s recommendations, and make their decision based in the views of a small but influential group. The banking community has claimed that any reforms could have a detrimental effect on the already fragile economy, but a survey showed that 71% were in favour of action.
This survey was held amongst influential figures in the city and they feel that to take no action would be a big mistake on the Governments part. Mr Walker has commented on the rumours, saying that they had been promised a radical reform but it now appeared that, if they were lucky, they would get a ‘light’ touch regulation after 2015, and this simply wasn’t good enough.
June 30, 2011
Filed under: Business Software — Alan @ 4:13 pm
Developments in high-speed broadband can help provide a boost for Wales businesses it has been claimed by a leading industry body. Federation of Small Businesses in Wales spokesperson Simon Evans said the internet’s emergence and the entrepreneurship potential it holds is enormous.
Cost to set up very low and instant access to the marketplace around the world make this very suited to small business, especially in small rural areas. But he said companies and specifically those in the countryside in Wales are being let down because of slow broadband speeds and poor infrastructure.
Broadband is an essential utility not an added luxury it is similar today to electricity and water. He said Wales cannot be left behind as across the UK high broadband is being rolled out. The Federation of Small Businesses in Wales has raised concerns about the UK growing digital divide and the lack of broadband coverage in the principality.
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 19, 2011
Filed under: Small Business News — Alan @ 6:10 am
SMEs (small and medium-sized enterprises) and in particular those with less than 50 employees (small) and less than 10 (micro) often suffer when it comes to competing for large public works contracts. SMEs win only 24% of these contracts in the UK, compared to 44% in France, and this figure is even worse for small and micro businesses at 11%. This despite the SME sector making up nearly 50% of the UK’s total turnover.
The Government has finally woken up to the issue and has taken a number of steps, including online help, changes to the Pre Qualification Questionnaire (PQQ) processes and giving them a voice. Small businesses often do not bid for these contracts and tenders either because they are unaware of them; they consider that there is too much red tape surrounding them, or both.
Business groups, including the Federation of Small Businesses (FSB), have welcomed the move. Commenting on the changes, John Walker of the FSB said that, in order for the changes to be successful, there needs to be a complete culture change within Government to the needs of small businesses. He added that removing the need for a PQQ will only work if the Government does not replace it with something even more bureaucratic.
The Government will now publish the number of contracts that are awarded to SMEs, which should help towards ensuring that the process is more transparent. In some areas, supplier frameworks that have already been procured, have been put in place by Local Authorities and other public sector organisations and have been in existence for some time, which has helped smaller businesses to access opportunities.
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.
December 12, 2010
Filed under: Small Business News — Alan @ 5:20 am
The government is boasting that it will get rid of Mega contracts in bidding for government projects. The problem is that government has pledged in the past to get the red tape out of the way, which is what they are pledging again.
The government says that it is attempting to make participation by SMEs easier and have even developed a website to this end. Changes to procurement include the possibility of publishing contractual terms online.
The Federation of Small Businesses is watching the developments cautiously. It warns that the current bureaucracy would need to be substantially reduced in order to create opportunity for SMEs, because everyone is going to want to bid.
Small businesses just don’t have full time people whose job is to pitch public sector work. That’s the reason SMEs do not typically get the contracts, one expert advises. So, in order to give SMEs more access, which is what the government is promising, they [the government] will have to substantially change their own bureaucracy.
Less than 20 per cent of government jobs are currently awarded to small business. In a recent survey it was discovered that about 25 per cent of FSB members had done some work for local authorities and around 7 per cent had contracts supplying agencies in government. Another 10 per cent or so had gotten contracts with NHS, while only 5 per cent had ever worked with central government.
The FSB represents the lion’s share of SMEs in the UK, so there is as much as about 95 per cent of Whitehall business going to large companies and conglomerates. It is small wonder that the government is trying to change the perception of their association to small business, say FSB authorities.
September 10, 2010
Filed under: Small business — Alan @ 9:26 am
Over 66% of SMEs have been the victim of crime during the past year costing them around £3,000 on average according to a report from the FSB (Federation of Small Businesses).
Research reports that 64% of all small firms suffered from crime with each paying out £2,900 because of the crime. Despite this fact, 39% of the firms did not report the crimes officially with almost half reporting that they would not gain anything by doing so. Another 24% of the firms felt that police would not be able to prosecute anyone for the crimes and another 25% felt police would not care.
Chairman for the FSB, Mike Cherry, stated that it is vital that the Government creates a forward thinking agenda so that small businesses will be protected from the losses associated with crime. Cherry added that the Government cannot continue to watch SMEs be the victims of crime that forces them to close because they cannot swallow the expenses.
The FSB is also asking that better action be taken so that businesses will benefit from a better response to crime including placing crimes that occur against businesses in an annual community safety newsletter.
Rob Garnham, the Association of Police Authorities’ chair, stated that they encourage small businesses to work alongside police if they think that they are not receiving the proper security and protection that they need because police authorities will help to ensure that all small business firms are protected from crime.
March 14, 2010
Filed under: Recruitment — Alan @ 2:35 am
New taxes may prevent over half of all small businesses from hiring more employees according to research from a new ICM Research survey and the Federation of Small Businesses.
The survey, which was conducted in January, showed small businesses have the want to grow in numbers but will need the correct conditions in order to get in the position where hiring new employees can be a consideration.
The survey also revealed that 64% of southeast businesses reported that taxes have negatively impacted their growth which is a view that was reiterated in the North with 60% agreeing to the impact of taxes and 59% agreeing in the London area. The overall average for the UK is around 58%.
The FSB is taking action by asking the government to stall national insurance contributions due to concern that the surge in employment that occurred during the holidays may soon end.
National chairman of the FSB, John Wright, stated that the employment figures from January saw many people able to return to work but due to the damage from the recession the figures after this period are expected to be much lower.
The FSB is urging the government to consider offering a rebate on national insurance for small businesses that have less than 50 staff members if they agree to take on new employees over the course of this year and next.
Wright continued to say that the UK economy needs some type of boost that will open up new jobs for people especially those who are under the age of 25 in order to start to recover from the fallout. The UK economy has seen a major increase in the use of job search engines, particularly those under the age of 25 that are currently out of employment.
January 5, 2010
Filed under: Small business — Alan @ 6:55 am
Leaders of many of Britain’s small companies have stated that the national insurance rate increase attacks jobs and will hinder the growth rate of Britain as it comes out of the recession.
The FSB or Federation of Small Businesses stated that Chancellor Alistair Darling has effectively taken away with the same hand he gave out after he deferred a one pence increase on SMEs corporate tax, but then hiked the contributions of small businesses to national insurance by about half a percent.
The move to defer the corporation tax will help out about 850,000 SMEs, but the move to increase national insurance will hurt companies and increase the rate of unemployment since companies will not be able to afford new or possibly current employees.
Chairman of the FSB, John Wright, stated that the new tax will hurt the UK’s employment rate and that since the unemployment is on the rise it is not excusable for the government to use national insurance tax hikes as a way to get revenue. Instead, Wright stated that SMEs should have been rewarded for hiring new employees to encourage job creation.
The new point hike is on top of a previous rate increase from 2008 that affects all SMEs, their staff, and those who are self employed in Britain. Workers who earn less than twenty thousand pounds a year will be exempt from the tax hike however.
Darling also announced in his pre-Budget report that the Enterprise Finance Guarantee scheme will be offered for another year.
January 2, 2010
Filed under: Small business — Alan @ 5:42 am
Chairman of the FSB (Federation of Small Businesses), John Wright, said that small firms will continue to need aid in the coming year as they launch their recovery plans which will be dependent largely on help from banks.
Wright stated that Britain’s 5m SMEs will have a large role in bringing the UK out of the recession but that they need help in order to get there. Among the aid they will need from the Government, according to the chairman, are measures that will make it easier to hire employees and set up businesses.
He suggested that every jobcentre should have a business manager and systems should be enacted that would help place graduates with small businesses that need qualified employees.
In his New Year message Wright also said that banks need to be more competitive in offering finance options to small businesses. He stated that with the proper confidence and aid the SMEs will in return help provide jobs to those in need which will help boost recovery efforts throughout the UK.
A spokesman for the Department of Business stated that small business will help recovery and the Government has pledged to help the sector out which is why they lengthened the Enterprise Finance Guarantee for another year so that banks will continue to lend to smaller businesses.
Additionally the spokesman said that they are working with the FSB to pair 10,000 graduates with internships at SMEs.
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The National Chairman of the FSA, or Federation of Small Businesses, has urged the Prime Minister not to water down the proposals that have been made for bank reforms. John Walker has written an open letter to David Cameron, urging him to carefully consider the findings in the ‘Independent Commission on Banking’ report, which is due to be published.