NEWS AND OPPORTUNITIES
Small business confidence nosedives
The FSB Small Business Index Q2 2022 reading of -24.7 is the lowest on record outside periods of Covid restrictions, down more than 40 points on the same quarter last year (+18.6), driven by surging operating costs, a high tax burden and struggles to fill vacancies. A record high 89% of small firms say operating costs are up this year compared to last. FSB National Chair Martin McTague said: “The cost of doing business crisis has worsened to the point where confidence is now lower than during last year’s massively disrupted festive trading season. We’re looking to prime ministerial candidates for unequivocally pro-business, pro-growth commitments. There is still time to act, but time is of the essence.”
New FSB report highlights small businesses' insurance issues
FSB has this week published a new policy report, Paying a Premium?, setting out recommendations to Government, regulators, and the insurance industry to improve the insurance sector for small firms and the self-employed. The report finds that three in five small businesses (60%) have seen their insurance premiums rise in the last year, while three in 10 say they find it hard to understand what their insurance covers. Martin McTague said: “Cover for risks of all kinds – from fire to flood to less tangible dangers – is vital to small businesses’ continued ability to trade, but our report indicates that there are problems lurking under the surface which, if left unaddressed, could further hamper small firms’ ability to compete on an equal footing.”
Recovery Loan Scheme extended
The Recovery Loan Scheme is to be extended for another two years, the Government has announced, following calls from FSB. Martin McTague commented: “The RLS definitely has a place in the funding picture for small businesses, as long as the banks promote it much better than its previous iteration. While the high minimum loan size and new personal guarantees will restrict take-up, the priority is to get this scheme out into the market place and operating.”
Train strikes next week
More train strikes are scheduled for next week, with Wednesday (27 Jul) due to see widespread industrial action. Tomorrow (23 Jul) and next Saturday (30 Jul) will also be affected.
HMRC customer survey findings
HMRC has published the findings of its 2021 Individuals, Small Businesses and Agents Customer Survey, which found that 76% of small business customers gave a positive rating to their experience with the agency, down from 82% in 2020. Confidence in HMRC among small businesses also fell, from 71% in 2020 to 63% in 2021.
Packaging user panel invitation
DEFRA is looking for small businesses to join a user panel to shape the future of packaging and waste to make sure it supports small businesses, specifically looking at the upcoming EPR legislation which will impact any business in England and Wales with a turnover greater than £1 million that produces packaging. Businesses will need to start collecting packaging data in 2023 to report by the end of 2023. More information can be found here, and you can register your interest in joining the panel here.
AI and drones plans
The Government has published an AI action plan, setting out how it plans to further the National AI Strategy, and a policy paper on the use of commercial drones in the UK.
Digital payments review
The Payment Systems Regulator (PSR) has responded to the PSR Panel’s Digital Payments Initiative, looking at “the challenges to the take-up of digital payments and what the potential solutions and regulatory actions could look like”. The report set out reasons why some consumers prefer cash, including “lack of access to digital and financial infrastructure or lack of digital and financial skills, that cannot be addressed by new types of digital payment alone”, and made recommendations on open banking payments. The new Financial Services Bill, meanwhile, includes “measures that will safeguard access to cash for generations to come”, the Government said.
Single Trade Window research and EXIPs survey
The attitudes of small importers and exporters towards the Single Trade Window have been surveyed by HMRC. The window is “a single data portal into which traders and those acting on behalf of traders can submit data once to government in a standardised format, to fulfil all import, export, and transit related regulatory requirements”, and the small traders surveyed were in favour of the system, and wanted to see it made more streamlined. In addition, UK Export Finance is asking SME exporters to share their views on its Export Insurance Policy – the short survey is here.
R&D tax reform
The Government is planning to make changes to the Research and Development Expenditure Credit (RDEC) and the small or medium enterprises (SME) R&D relief, set out in a policy paper by HMRC. The changes are aimed at allowing more types of expenditure to be subject to relief, limiting relief to UK-based supply chains, tackling abuse, and making the reliefs operate as intended, among others.
Business rates and sole trader data consultations
HMRC has launched twin consultations on digitalising business rates through connecting business rates and tax data, and improving the data it collects from its customers, including self-employed people.
Small business webinar
The Small Business Commissioner is holding a webinar with Companies House on 27 July to discuss late payment – sign up here. FSB wants to see the boards of large corporates made responsible for supply chain payment practices, to improve accountability and transparency.
Intellectual property webinars
The Information Commissioner’s Office is offering two webinars next week, on IP Basics and IP Abroad (28 Jul).
UKCA marking webinar
The Department for Business, Energy, and Industrial Strategy is holding a webinar next week (28 Jul) on transitional measures relating to the UK conformity assessment marking, required to place goods on the market in Great Britain.
Networking for ethnic minority-led businesses
FSB is holding a free networking event for ethnic minority business owners on 28 July – sign up here.
FSB SUPPORT AND INFORMATION
- Our Sustainability Hub has everything you need to help you on your journey to net zero.
- If you are a UK business which trades with Europe, keep track of the latest changes and developments via FSB's Transition Hub.
- Our #BusinessWithoutBarriers hub on disability and health conditions has free guidance and resources to help small businesses make their workplaces more inclusive, and to help disabled entrepreneurs identify opportunities and support.
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