The FSB Trade and Industry Policy Unit represents small businesses in public procurement, post offices, telecommunications, consumer rights and other issues. It also works on the issue of Pub Companies (Pubcos) and their tenants.
Clive Davenport, Trade and Industry Chairman
Current work
Publicans and Pub-Companies (Pubcos)
The FSB has been closely following the issue of unfair practice in the tied pub market since 2004 when the then Trade and Industry Select Committee undertook its initial investigation into the sector. The FSB gave both written and oral evidence to the Committee's 2004 inquiry.
In its 2004 report, the Committee put forward a number of recommendations to improve the relationship between pubco and tenant. In 2008-09 the Committee revisited the inquiry and found that the situation had significantly worsened, so much so that it recommended an urgent investigation. Again, the FSB submitted written and oral evidence.
>Mediation process
The FSB has been working closely with organisations representing licensee, lessee and consumer interests. The FSB was involved in an industry-wide mediation process in an attempt to generate agreed changes to current practices across the industry.
The FSB was disappointed that the mediation process did not result in any agreement. We were also disappointed by the response from the Office of Fair Trading (OFT) in October 2009 to a super-complaint issued by the Campaign for Real Ale (CAMRA) on anti-competitive practices in the market which concluded that there was currently no cause for concern.
> Independent Pub Confederation
The FSB was a key player in the formation of the Independent Pub Confederation (IPC) in October 2009, a campaigning group which aims to act as a strong and unified voice in the fight against the unfair practices of pubcos. The IPC gave oral evidence to the Business, Innovation and Skills' Committee when it revisited its inquiry into pubcos in December 2009. The IPC awaits the Government's response to the committee's report.
As members of the IPC, the FSB recently gave evidence to the All Party Save the Pubs Group. Read the coverage.
Members of the IPC are the Federation of Small Businesses, the Association of Licensed Multiple Retailers, the Guild of Master Victuallers, the Fair Pint Campaign, Justice for Licensees, CAMRA, Unite the Union and the Society of Independent Brewers – supported and endorsed by the British Institute of Innkeeping (BII) and the Federation of Licensed Victuallers Associations (FLVA).
In a policy paper published in August 2009 the FSB recommended a reform of the tie, the creation of an Ombudsman for tied publicans and fully transparent rent reviews through a statutory code.
Post Offices
- Industrial action
National postal strikes could cost small businesses anywhere between £500 and £5,000, according to an FSB survey.
The future of the Post Office network is a key issue for the FSB. A recent survey indicated that 33 per cent of small businesses used the postal system to receive supplies for their business and 46 per cent to send goods to customers who have bought their products. This means a regular trip to a Post Office branch or sorting office to pick up and send off parcels. Furthermore 90 per cent of small businesses make the trip to a Post Office branch to buy their stamps and to send their letters.
Small businesses are currently not getting the services that they need from the Post Office. The future Post Office should look and function very differently from the current model. It should be made into a flexible business hub, able to stand on its own two feet and service the small business community, which constitutes the backbone of the British economy.
Read our report on turning Post Offices into small business hubs here
Post Bank coalition
The FSB welcomed the Government's committment to an expanded financial services role for the Post Office, announced by the Prime Minister at the 2009 Labour Party Conference. However, the FSB is disappointed that the long awaited consultation on the issue focused only on what could be achieved within the current banking model.
The FSB is part of the Post Bank coalition which includes the Communication Workers Union, Unite, the New Economics Foundation (NEF), the Pensioners Convention and the Public Interest Research Centre. The coalition continues to campaign for a publically owned bank, and urges the Government to transform Northern Rock into a state-owned bank within the Post Office.
A YouGov poll shows that just under four out of five people want a publically run bank and just over three out of five say they would use such a bank at the Post Office.
Procurement
Recent FSB research found that small businesses struggle to win public sector contracts.
• Read our research
In the 2008 Budget the Government asked Anne Glover to lead a committee to examine what it could do to make it easier for Small and Medium Sized Enterprises (SMEs) to supply to the public sector. The Government has accepted all 12 recommendations of the Glover Review and is now implementing them. The FSB is the only business organisation working closely with Government on the Implementation Programme Board.
Read FSB's submission to the Glover Review here.
The FSB has written a policy paper for those with an interest in local government procurement, where given the opportunity, small businesses can deliver innovative and reliable locally based services that generate significant income for the local economy and provide value for money.
• Read our policy paper
Broadband
More than half of small businesses rely on the internet for up to 50 per cent of their annual turnover, so the online world is crucial to small business development. The Government must show its support for firms, particularly in rural Britain where businesses have been waiting for years for promised Government action to deal with the ‘notspots' - where there is no broadband access
Small businesses need high speed broadband to ensure the UK remains a key player in the global economy. The FSB is undertaking significant research on how small businesses are affected by slow speeds and is playing its part to ensure that the voice of small business is heard in the policy debate.
The FSB opposes the proposed broadband levy for Next Generation roll out, based on a supplement of 50 pence per month on all fixed copper lines. The FSB believes that this solution will only deter private companies from spending the money required to upgrade the country's internet infrastructure and that there will be no incentive to deliver competitive services.
The FSB is calling for:
- Service providers to guarantee minimum upload and download speeds
- Policy makers to enforce regular review and increase of these minimum speeds to enable the UK to be a real competitor
- Diversification of the market place to encourage stronger competition and greater customer choice
- Wider use of fibre-optic cables and development of more innovative solutions to enable high-speed broadband in all areas of the UK
The FSB is also concerned on the issue of copyright as currently outlined in the Digital Economy Bill. As it stands, many small businesses providing wi-fi networks will be liable for the infringing activites of their customers. This would mean that a cafe whose customer(s) downloaded copyright material illicitly may be liable for civil copyright infringement proceedings and fines, or disconnection and a period of loss of its wi-fi service. Furthermore, if this Bill is not amended this would also impact on those businesses that provide community and business wireless access in 'not-spot' regions.
- Listen to a podcast with the FSB's Chief Spokesman Stephen Alambritis talking about the problems small businesses have with their broadband service and also about the Terminate the Rate campaign.
Stakeholders
- BIS (Department for Business Innovation and Skills)
- OGC (Office of Government Commerce)
- Supply2Gov