Uptick in GDP welcome, but challenges remain
The Office for National Statistics (ONS) reported that GDP rose by 0.2 per cent in January 2024. FSB Policy and Advocacy Chair Tina McKenzie welcomed the increase but warned that despite the encouraging start to the year, many small businesses were still experiencing challenging economic conditions, especially given the declaration of the recession in the final quarter of 2023. The Chancellor’s Spring Budget contained some measures to help bolster growth for small firms, after successful campaigning from FSB, notably the increase in the VAT threshold from £85,000 to £90,000, and the cut to National Insurance Contributions (NICs). Tina McKenzie told SME Magazine: “This isn’t just about existing businesses starting to turn to growth in 2024; this is about creating the conditions for people to set up in business for the very first time. This news must be built on if it is not to turn into another false dawn for small firms.
National Insurance cuts will take effect from 6 April following Commons motion
Following successful campaigning by FSB, resulting in announcements in both the Autumn Statement and Spring Budget, the House of Commons passed a motion to reduce self-employed National Insurance Contributions (NICs), this week. The motion will see reductions take effect from 6 April, with NICs for the self-employed (Class IV) cut to six per cent from nine per cent. Employers (Class I) NICs will also be cut by a further two per cent, on top of the two per cent cut brought in by the Chancellor in October 2023. Employers should check with their payroll system provider that appropriate changes to Class I NICs have been made. Most electronic payroll systems should be updated automatically by providers. Businesses can find out more information on the Government website.
Late payers named on ‘rogues list’
FSB has reiterated its call for the Government to tackle the scourge of late payments to small businesses as research from Good Business Pays listed the slowest payers to small businesses in the UK, with some firms taking over 100 days to pay suppliers. FSB’s chief of external affairs, Craig Beaumont, told The Times: “These companies are the worst of British businesses and are forming a rogues’ gallery of people that pay their small businesses late, or they are serial late payers.” From 1 April, after successful campaigning by FSB to highlight the issue, new Government rules will require suppliers bidding on public sector contracts to commit to paying suppliers within 55 days.
Expense claims for training for the self-employed: updated guidance
FSB has been working with HM Treasury on updating the guidance to help more self-employed people access and claim costs from training. See examples of what you can claim for here.
Tackling small business issues across Europe
This week, SMEunited held a board meeting attended by FSB and other small businesses and craft organisations from across Europe to discuss the common challenges and priorities facing SMEs. FSB’s head of international affairs, Kate Foster, raised the importance of collaboration in addressing a range of issues - from sustainability to late payments, and AI adoption.
Supporting small firms to make the most of FTAs
FSB met with Minister of State for Trade Greg Hands to discuss how the Government can provide better support to small businesses to get the most out of the UK’s free trade agreements (FTAs) this week. The UK has agreed trade deals with 73 countries as well as the EU. During the meeting, FSB National Chair Martin McTague raised the importance of the Government doing more to make small firms aware of the trade opportunities available to them by improving the accessibility and visibility of FTA-related resources, especially by improving the quality of online information.
Prepare your business for changes to import controls
Additional changes to import controls will come into effect from 30 April under the Broader Target Operating Model. Changes include the introduction of physical checks for medium-risk plant and animal products imported from EU countries. The Department for Environment, Food and Rural Affairs (Defra) is holding a series of webinars on the changes and how they will impact businesses that import plant and animal products.
E-commerce week: Expanding into overseas markets
E-Commerce Week – a new campaign to encourage more small businesses to start selling internationally online takes place from 25 to 9 April. During E-Commerce Week, The Institute of Export & International Trade (IEIT) is hosting a free webinar for businesses on how businesses can expand into overseas markets and make the most of e-commerce tools. The webinar is free to attend on and takes place on 19 March.
Heat in buildings proposals must be redesigned with small business in mind
Responding to the Scottish Government’s consultation on its proposed Heat in Buildings Bill – which will set out how all building owners will need to have ended their use of polluting heating systems by 2045 – FSB flagged concerningly low levels of awareness among its members over compliance requirements. The response highlighted that Scottish small businesses recognise that significant changes must be made over the next 20 years if net zero commitments are to be met, and many are supportive of the Government’s ambition in this area. FSB Scotland is calling on the Scottish Government to rethink some of its proposals and ensure sufficient support is made available for small businesses, financial and otherwise, to make the green transition achievable.
Growing small firms is vital for economic recovery in Wales
This week, FSB Wales joined forces with the Development Bank of Wales and Cardiff University to host a small business briefing for members of the Senedd. The briefing, which drew on FSB’s research as well as data from the quarterly report from Economic Intelligence Wales, provided a basis for a discussion about measures needed to support and grow small businesses. Topics also included the pressures that SMEs are facing - from the impact of inflation to the Welsh Government’s decision not to extend the 75 per cent Small Business Rate Relief support past April. The meeting was hosted by Welsh Conservative Shadow Minister for Economy Paul Davies MS and attended by Senedd Members from across the political spectrum.
Northern Ireland small businesses increase trade opportunities with the United States
FSB held its annual ‘Power of Small Business’ roundtable in Washington DC this week, hosted by Tina McKenzie, FSB’s policy and advocacy Chair. Joe Kennedy III, US Special Envoy to Northern Ireland, and Chris Heaton-Harris MP, Secretary of State for Northern Ireland were in attendance, alongside guests from the US, UK, and EU. This was the first in a series of engagements in Washington DC, as FSB continues to emphasise the importance of small businesses to sustainable economic growth while seeking to build new trading relationships and opportunities for SMEs between on both sides of the Atlantic.
New Best Places to Live guide shows link to thriving small businesses
The Sunday Times published its annual guide to the best places to live, making a clear link with thriving small businesses communities. North Berwick in East Lothian, topped the Sunday Times Best Places to Live list. In the article FSB National Chair Martin McTague highlighted the contributions that small firms make to local economies and communities, and added: “They take pride in their neighbourhood, building close ties with the people, organisations, charities and other businesses in the area, something that larger firms may struggle to do. Often it’s the ecosystem of small businesses that create and nurture a thriving high street or town centre at the heart of the community.”
LGBTQ+ small business survey
Small businesses are invited to take part in a new survey on LGBTQ+ businesses, conducted by OutBritain and OPEN, a non-profit think tank. The survey focuses on the experiences of LGBTQ+ entrepreneurs and will help to form the basis of a report on the contributions, and challenges faced by LGBTQ+ small businesses and entrepreneurs in the UK. The survey is confidential and only takes a few minutes to complete and can be completed via the link.
Women in Trade Associations Powerlist
FSB’s head of policy research, Emelia Quist, spoke at the Trade Association Forum’s (TAC) reception to mark the publication of the TAC’s ‘Powerlist’ of women in trade associations. During the reception, she spoke about the importance of women in enterprise and their contributions to trade associations. The Powerlist, which was judged and compiled in partnership with FSB and the Confederation of British Industries (CBI) and published on International Women’s Day, champions the most influential women in trade associations.
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