Week 5 of 2009              Friday 06 February 2009

In this week's issue: Rate relief; Snow; Interest rates; Insolvency; Prompt payment; Government support for small businesses

Small Business Rate Relief

The FSB is working with Peter Luff, Chairman of the Business and Enterprise committee, on a Small Business Rate Relief (Automatic Payment) Bill to apply rate relief automatically for small firms. The Bill requires the support of more than 100 MPs to move to the next stage in the Parliamentary process.  You can help ensure that this Bill is passed by printing off our letter template, editing it to suit what you want to say and sending it to your local MP. Read our press release.

"There's snow business..."

The well known wintry warbler Let it Snow was written in 1945 and has since been made famous by singers such as Dean Martin and Michael Buble. Fast forward to 2009 the tune could well and truly sum up the weather this week as well as the avalanche of FSB mentions in the press, TV, radio and online. The FSB's press coverage snowballed after we estimated that each snow day would cost the economy £1.2 billion due to a fifth of the workforce being stuck at home. Our sums were picked up by Sky News, the Telegraph, the Times, the Financial Times, the Sun, the Mirror, the Daily Mail, the Guardian, the Independent, and even in the Australian and the New York Times.

Interest rates

As interest rates dropped yet again to their lowest ever level, the FSB suggested that the Bank of England's Monetary Policy Committee may have been wiser to hold the rate. The Financial Times and the BBC picked up on our concerns that it is now access to finance rather than the cost of it which is a concern.

Insolvency statistics

The FSB was concerned to see an increase in company insolvencies in the Quarter 4 statistics from the Insolvency Service. However, we have a five point plan which would shore up businesses, save jobs and create new employment opportunities.

Prompt Payment

The FSB is working hard to ensure small businesses get paid on time. One way of doing this is to lead by example. Sign up to the Government backed Prompt Payment Code run by the Institute of Credit Management and you will be showing your commitment to fair payment terms and creating an example for others. The first 150 businesses to sign up will receive a thank-you letter from Business Secretary Peter Mandelson. You have until February 20.

Government support

The Government has launched a publicity campaign to raise awareness of packages of support for small businesses. The schemes, which fall under the umbrella of Real Help for Businesses Now, include details on business health checks, free training, help with delaying tax payments and loan guarantees. The public information campaign urges businesses to contact a Business Link adviser on 0845 600 9 006 or visit the Businesslink website.

Have a good weekend,

Marc Shoffman