Julie Williamson (South Wales) asked: "Given the cost of fuel what would be your advice to small businesses that are reliant on the road network?"
Gordon Birtwistle MP, Liberal Democrat Party
The cost of fuel is being discussed with fervour in the Treasury. Hopefully there will be announcements made in the Budget on the cost of fuel. The fuel escalator which was introduced by the last Government is a major problem, and the cost of oil has amazingly gone up from around $70 a barrel to about $130. Unless the oil price comes down the Government can't do much about it.
Luciana Berger MP, Labour Party
George Osbourne must know how the cost of fuel is impacting on businesses and families. An estimated 0.5% has been taken off the GDP due to the cost of oil. The Labour Party has asked George Osbourne to take off the VAT increase on fuel in the first instance. The Government made a promise to introduce the Fuel Duty Stabiliser before the General Election. They should honour that promise.
Brian Binley MP, Conservative Party
The cost of fuel is a considerable concern. My advice to small businesses would be to control the fuel budgets of their sales people. Businesses should also make sure their vehicles are efficient. I would expect the 1% planned increase in petrol to go in the Budget. We have to do what we promised before the General Election and introduce a fair Fuel Duty Stabiliser, and I have made that point to George Osbourne.
Jake Berry MP, Conservative Party
Whatever the Government does, high fuel prices are here to stay. Businesses need to look at the fuel efficiencies of vehicles and make use of the technologies available so that they can meet clients virtually. Politicians have to start being honest. Fuel is one of the biggest costs to a business. We have to introduce the Fuel Duty Stabiliser and end the 8 pence a litre increases that we had from the last Government.
Mike Cherry, National Policy Chairman
I'm delighted to hear that the two Coalition parties support the Fuel Duty Stabiliser. By bringing in the stabiliser the Government would still get the VAT on the duty. I hope that the news we have heard about the contents of the Budget on fuel come true.
Gordon Birtwistle MP, Liberal Democrat Party
The Fuel Duty Stabiliser will help businesses but it won't always help the haulage industry.
Peter Sissons
European hauliers are competing UK hauliers off the road because their fuel is cheaper.
Brian Binley MP, Conservative Party
Successive Governments have seen fuel as a cash cow. Approximately 63% of the fuel cost at the pump goes in taxes. Across the continent it is more balanced. We will see increases in the fuel costs for the foreseeable future. Coal is massively important to this country and we need to change our attitude to it.
Peter Sissons
The policy of the last Government was that fuel should go up because of the green agenda. Government policy is to push the price up to make people use alternative forms of fuel.
Luciana Berger MP, Labour Party
I'm hoping to see significant investment in greener gases and new technologies. The cost of fuel is not sustainable for businesses.
Trevor Wood, FSB member
A pay more, consume less policy doesn't work. The public transport infrastructure is virtually non-existent and I rely on my car to get to my clients. What are the politicians going to do about public transport?
Gordon Birtwistle MP, Liberal Democrat Party
We can't be reliant on Russia for gas. We have to do something to replace our gas and oil power stations. We are also looking at nuclear power. Our public transport was decimated years ago in preference of the car. A lot of investment is going into the improvement of the local rail network so that we have an efficient railway system. It doesn't matter if buses don't make a profit - they should be funded by the Councils. We have to have alternative forms of transport since we will be priced out of using cars because there is no limit on what oil prices can increase to.
Brian Sweeney of Liverpool asked: "With major events such as the Olympic Games on the horizon, what would the panel suggest to encourage tourism, especially in the North West towns, such as Liverpool, during this time of budget cuts?"
Luciana Berger MP, Labour Party
Would like to see an increase in tourism apprenticeships, as part of the drive to increase apprenticeships, and she would expect and hope street parties and the like to go ahead as part of national events including the Royal Wedding.
Peter Sissons
You have to make a city worth visiting and Liverpool is definitely a city worth visiting and is packed with things to do.
Jake Berry MP, Conservative Party
Liverpool was a centre for tourism and should be celebrated for that. However, broader aspects of tourism such as the Royal Wedding should be used with the online market to promote the UK beyond our shores to the US, Canada etc.
Mike Cherry, National Policy Chairman
Local Councils are cutting back, but with the Olympics looming and the Government cutting back it has to start promoting the UK so that we all benefit especially and including rural areas, not just the main city centres and venues. We should be promoting ourselves as widely as we can including to the increasingly affluent BRIC countries (Brazil, Russia, India and China).
Brian Binley MP, Conservative Party
He said that he visited the Isle of Wight recently and saw how difficult it was for more traditional tourist businesses to sell themselves in the modern era. He said he also went to a Trade Fair in China and there was massive applause for the UK pavilion which went on to win a prize. We are starting to sell ourselves better but we are still not doing it well enough, we have our own particular problems (including the weather) that we have to address.
Comments from the floor:
There should be a better connection between the spend by local authorities and the return on tourism so the returns are more tangible.
We don't make enough of what we have got for example, Charles Darwin's birth place is a Government evaluation office! We need to encourage people to visit rural areas, especially in Scotland, and encourage them to patronise the night time economy, and to keep spending money. There is an idea to have the Highland Games at night to revitalise it.
We need a better public transport system, to support tourism.
Antonio Falco asked: "How does the panel think the Government could do more to hold the banks to account and ensure that banks lend on fair terms?"
Gordon Birtwistle MP, Liberal Democrat Party
Lending is a serious issue for small businesses. Holding back investment is stalling economic growth. Banks asking for a house guarantee on lending decisions is idiotic. What is needed is a return to local bank managers who can make real decisions. Promoting more competition in the banking system will help challenge the dominance of the four high street banks.
Mike Cherry, National Policy Chairman
No bank is business friendly and we need more competition in the system. The FSB has proposed establishing a Post Bank. The costs of borrowing are paying for banks re-capitalising the balance sheets. Project Merlin is not delivering for small businesses and we need more empowered local bank managers.
Brian Binley MP, Conservative Party
Taking regulation away from the Bank of England is disastrous. The recent bank bonuses could have been used to create jobs. We need to split casino and retail banking and push lending decisions to local bank managers who understand local businesses.
Luciana Berger MP, Labour Party
Contracts don't impel bonuses and we need a Small Business Adjudicator to help small businesses challenge decisions.
Jake Berry MP, Conservative Party
Since 2008 banks have behaved appallingly. Too many businesses have had funding pulled from them for no rational reason. Business need to have a right to challenge especially as the Ombudsman is toothless. The Government has started to take action for example, Enterprise Finance Guarantee Scheme.
Antonio Falco, FSB Member
Putting pressure on banks doesn't work and we need more direct action. For example, businesses need to threaten to close their accounts to be taken seriously. Dealing with banks isn't a two way street.
Gordon Milward (South East Yorkshire)
No business should accept funding that requires a personal guarantee.
Brian Binley MP, Conservative Party
Personal guarantees on house are a big issue for small businesses especially with matrimonial homes. We need to see more decision making at a local level.
David Knowles Leak (Thames Valley)
When will politicians stand up to the banks?
Brian Binley MP, Conservative Party
Government and politicians reflect all of us. There needs to be a partnership between business and Government acting to challenge banks.
Luciana Berger MP, Labour Party
The Government needs to start delivering on its promises that were made in Opposition.
Gordon Birtwistle MP, Liberal Democrat Party
The Government has done something including the tax on banks over the life of the Parliament. We have to remember that the banks can move offshore very quickly and they pay a lot in taxes. What is needed is more local bank managers that can make decisions.
Luciana Berger MP, Labour Party
Bank levy on bonuses would have shown a stronger sign of intent from Government. We need to be more effective on the banks that tax payers have a stake in.
Jake Berry MP, Conservative Party
We needed stronger actions when the banks were on their knees at the start of the credit crunch.
Tony Bard (Pembrokeshire)
Why politicians were scared of the banks? Barclays hid earnings and bonuses offshore but hide behind the safety of our legal system.
Brian Sweeney (Liverpool)
We need to use same regulations for bankers as you do have for Independent Financial Advisers.
Brian Binley MP, Conservative Party
The FSA told us to apply light touch regulation and this was seen with the problems with Northern Rock. The Bank of England needs to be in charge of regulation to put pressure on the banks. We should be exerting more pressure on state owned banks.
Mike Cherry, National Policy Chairman
Small businesses have been used as a cashcow to help restore balance sheets. Sometimes small businesses don't recognise the power they have and we need more competition.
The fourth question put to the panel was around the high speed rail network and whether this was just a white elephant. It was also asked, what the total cost for the scheme would likely be and who may lose out in the short and long term?
Jake Berry MP, Conservative Party
Felt it was crucial to invest in transport at an even greater level than what has been invested. Whilst feeling that the scheme is not a white elephant, Mr Berry questioned the value of shaving a mere 10-15 minutes off a rail route between Birmingham and London. The real benefits that need to be explored would be in the North of England where a potential 1-2 hours could be saved. Akin to this would be the huge number of jobs that would be created.
Luciana Berger MP, Labour Party
Was in full support of the high speed project but echoed the thoughts of Mr Berry in the fact that we need to consider what happens past Birmingham as we need to ensure that journey time from further north of the country was reduced significantly. Currently the Transport Select Committee have the high speed network on the agenda for detailed analysis.
Mike Cherry, National Policy Chairman
Feedback from members was clear, that a proper and efficient road network was critical as many small businesses such as plumbers and electricians could not use the rail service, due to the volume of equipment that was required. Not enough investment has been put into the high speed network as £35 million does not get us very far. We need greater investment in the transport infrastructure in general so old railways are improved and road links are developed.
Brian Binley MP, Conservative Party
Fully supported the change as the west coast rail link, to name just one network, was currently working to capacity and a release of pressure on the network is greatly needed. Mr Binley went on to agree with Mr Cherry's thoughts around the fact that an overall look at the transport infrastructure needs to be commissioned.
Gordon Birtwistle MP, Liberal Democrat Party
Offered his support to the high speed plans as he felt it was a much greener way of travelling and reducing road traffic volume. Mr Birtwhistle also touched on the huge number of jobs that will be created but felt, like others that a more co-ordinated study needed to be carried out across transport networks.
Gwyn Evans asked, "Both the Government and the Opposition agree that more public service contracts should go to small businesses. What does the panel think about the current procurement process?"
Mike Cherry, National Policy Chairman
We have been campaigning a long time for more public sector contracts to small businesses. When we ask why more contracts can't automatically go to small businesses we often get the answer that State Aid rules prevent it. Small businesses should get a much larger share of the cake.
Brian Binley MP, Conservative Party
Local Government has been encouraged to employ procurement companies to issue contracts and this cuts out small businesses. I've demanded from the local authorities in Northamptonshire fortnightly statistics on how many contracts are going to small companies. Around 23% of the contracts go to the companies in Northamptonshire but it needs to be more.
Jake Berry MP, Conservative Party
The OJEU process is a big barrier. We need to reduce the costs to businesses in bidding for contracts. We have now introduced one online form that businesses complete once in order to submit tenders and this should open the door to small businesses on public sector procurement.
Luciana Berger MP, Labour Party
The procurement process has been overly complicated for small businesses. The Labour Government made changes to ensure that the main contractors on public sector contracts were paid within five days. Of course we also need to ensure that sub-contractors are also paid within five days and not the sixty or ninety days we have been hearing about.
Gordon Birtwistle MP, Liberal Democrat Party
In Burnley we found that contractors on school improvements were charging ridiculous sums of money to change lightbulbs. Why don't they employ local tradespeople or employ someone rather than pay a high charge to the contractor? Large contractors should have to sub-contract with local companies for delivery of public sector contracts.
Mike Cherry, National Policy Chairman
Liverpool was one of the first councils to sign the Small Business Accord. It is up to members to get their local councils to sign the Accord so that small businesses can get more involved in delivering contracts.
Jake Berry MP, Conservative Party
There is a fantastic website called 'Supply Hertfordshire' which advertises all public sector contracts regardless of value. If your council isn't doing something like that, sack them in the next local election!
Brian Binley MP, Conservative Party
The European regulations on procurement need changing. Unless we change them we won't solve the problem of keeping trade local.
Gordon Birtwistle MP, Liberal Democrat Party
Procurement is a concern for the Treasury. Local Government has to make cost savings. Burnley Council believes in giving contracts to local businesses but some of the large contracts are governed by European regulations and they go against small businesses.
Peter Sissons
asked the member audience their thoughts on the high speed network. The response against the idea was overwhelming.
Peter Sissons
Concluded the question time session by asking each member of the panel to sum up what was of particular importance for the future of the economy and small businesses.
Brian Binley MP, Conservative Party
was surprised that more questions hadn't come around issues on skilling up the workforce through training and education as that effects all employers. Mr Binley was also shocked that not more mention had been made on the myriad of planning pools that hold back small businesses. To finish, Mr Binley touched on tax regulation and how it needs to be made simpler with less red tape and bureaucracy because as it stands, it does nothing to help small business.
Luciana Berger MP, Labour Party
Reaffirmed the topics that had been covered over the course of the discussions as the main challenges for small businesses but felt more needed to be done by Government to support small businesses.
Jake Berry MP, Conservative Party
Felt the current times were reflected as the deepest hole the country has ever found itself in. The only way that this could be climbed out of was through small business growth and development as SME's are the backbone of the country. Mr Berry, as Ms Berger felt that more needed to be done to persuade businesses that the UK was the best possible place to start-up business and continue to develop in.
Mike Cherry, National Policy Chairman
Echoed earlier concerns around greater access to procurement for small businesses and the fact the wider transport infrastructure needed to be developed. Mr Cherry also felt that more attention needed to be given to banking regulation, which currently tends to focus no wider than the small business community.
Gordon Birtwistle MP, Liberal Democrat Party
Felt the country was in a dire financial position and were paying an incredible £125 million on interest alone per day. Mr Birtwhistle put forward the opinion that the Government couldn't pull the country out of the situation and it was up to small businesses to do so by looking to grow and employ a greater number of staff. Mr Birtwhistle was clear in the fact that if each business employed one extra person it would pull the UK out of the current economic situation.