Prime Minister David Cameron is set to bring out the Coalition plans for businesses. This entails a bigger allowance to help foot the bills employers face relating to national insurance. One expects that he will also talk about the fines big companies could face if they delayed payment to small suppliers, a move aimed at supporting small businesses, which take a large portion of the number of businesses in the country.
Mr. Cameron hopes to reassure small firms of the government support by detailing these policies. This move comes after Labour Leader Ed Miliband promised cuts to small business firms while raising the corporate tax rate for big businesses.
Publication of the tax allowance legislation is to take place today. Downing Street said that 1.25 million businesses would benefit in the new measure. Additionally, about 450,000 will no longer have to shoulder the burden of national insurance. By small businesses, they refer to firms and enterprises having lesser than 50 employees and these will account for 90% of the benefits.
Mr. Cameron will be addressing business leaders in eastern part of England. He will stand firmly besides small businesses saying that they are the bread-winners as well the hope for people across the country. He shall refer to them as the “lifeblood of the economy”. He is also to address another thorn in the flesh for small businesses: the delay in payment by the big firms.
Katie Hall working for the CBI said that timely payment kept the small firms in business. More than 85% of the small and medium-sized businesses were experiencing delays in payments. This could hamper the daily operations of the small businesses.
Although small firms have the legal right to force big companies to pay faster they hesitated because of the fear of scaring such customers away. Ministers consider this move by Mr. Cameron as positive step forward in getting big companies to make faster payments. The latest transparency plans could “name and shame” late payers as records will show their payment details.