Spring Budget needs to bring economy out of its rut, say small firms
The Federation of Small Businesses (FSB) has called for the Spring Budget to include measures to sustain jobs and hours by increasing the Employment Allowance to £6,500, bringing it in line with increases to the National Living Wage. The VAT threshold should also be increased to at least £100,000, with 38 per cent of small firms calling it a “barrier to growth” in the latest Small Business Index (SBI). Other measures include tax-free shopping, an extension of the Recovery Loan Scheme, and turning the Business Energy Service pilot into a national programme. FSB National Chair Martin McTague told The Times: “This budget should be about balancing the scales, raising living standards for those who need it the most and securing a strong, economic future in the wake of a turbulent economic climate.”
Drop in GDP in Q4 marks start of recession
The Office of National Statistics reported a 0.3 per cent drop in GDP in the last quarter of 2023, meaning the UK is now officially in a recession. This news is supported by FSB data, which shows business confidence has been in negative territory for seven straight quarters due to the energy price crisis. The hospitality sector is particularly hard hit. FSB National Chair Martin McTague repeated FSB’s calls for pro-small business measures in the upcoming Budget. He told The Independent, The Telegraph, and LBC News: “The Government needs to foster an environment where small firms can grow, to the overall benefit of the economy, and to put this period of stagnation and shrinkage behind us once and for all.”
Shaping the future of workplace pensions
FSB is asking its members and other small business owners to take part in a new workplace pensions survey. The survey aims to gauge employers’ opinions on expanding workplace pensions for younger workers, as well as the level of employer contributions. It only takes a few minutes to take part and the results will be vital in shaping the future of pension policy. Participants will be entered in a prize draw to win £250.
Making the case for fairer business banking
FSB attended the All-Party Parliamentary Group (APPG) on Fair Business Banking. During the meeting, chaired by former Small Business Minister Paul Scully, FSB Senior Policy Advisor, Andrea Macleay, discussed the importance of the APPG’s draft SME manifesto, which FSB fed into. The manifesto will address finance and dispute resolution challenges for small businesses, as well as how the Government can ensure fair treatment for small firms.
Changes to flexible working arrangements
Starting 6 April, employers must adapt their approach to handling flexible working requests due to the new Flexible Working Bill. This legislation affects aspects from remote work to flexitime options. Employers are required to consider these requests fairly, allowing employees to seek flexible working arrangements from their first day of employment. Information about the incoming changes to flexible working is available, as well as the benefits to employers and employees.
Improving wellbeing at work
The British Safety Council (BSC), with the support of FSB, is holding a series of workshops to help improve the mental wellbeing of small business owners and employees, as part of its Keep Thriving campaign. The workshops will explore ways to improve wellbeing at work, and how to develop an effective wellbeing strategy. They will take place in-person, in Cardiff on 11 March, Manchester on 16 April, Bristol on 29 April, and Edinburgh on 14 May. Email [email protected] to enquire about attending.
Stop! Think Fraud campaign
The Home Office has launched its new Stop! Think Fraud campaign to raise awareness of the impact fraud has on individuals and businesses. According to FSB’s report into business crime, Cracking the Case, 37 per cent of small businesses have been a victim of fraud in the last two years. The campaign provides businesses and individuals with information and a range of resources to help prevent fraud – from how to spot it, to improving online security. Online fraud can be reported to Action Fraud.
Italian/UK business matchmaking platform
Cassa Depositi e Prestiti (CPD), an Italian development bank, has set up a free-to-use business matchmaking platform for UK and Italian businesses looking to find potential partners, in partnership with the Italian Embassy in London. The platform is set to launch on 5 March during a free, online event, which will be followed by a virtual walkthrough of the platform. Details, and how to attend the launch event are available on CPD’s website.
Scotland: FSB meets with Scottish Labour leader
FSB in Scotland attended a roundtable with the leader of the Scottish Labour Party, Anas Sarwar MSP, and members of his economy and finance team, in Dundee this week. The roundtable was held at DC Thomson’s offices, with discussions focusing on a range of small business issues, as well as the local economy and national priorities to support SMEs. FSB spoke about how recruitment challenges present a stumbling block for many small businesses, and the importance of increasing engagement with local schools to help reduce gaps in the labour market. The Scottish Labour Party also launched its plan for business, Building a business case for Scotland, this week, which FSB fed into.
Wales: Business push back against Royal Mail proposals
FSB’s Head of Wales, Ben Cottam, spoke to BBC Wales News about the impact of proposals to scale back Royal Mail’s services. This comes after an Ofcom consultation made a number of recommendations, including cutting the requirement to deliver post from six days to five. He told the news channel: “Rural businesses rely very heavily on the reliability of a Royal Mail’s six-day-a-week service. When we look at the options for consultation, we need that to be borne in mind.”
Northern Ireland: Executive must act swiftly on childcare
This week was the Northern Ireland Assembly’s first full business week following its restoration. At the top of the agenda was a motion on childcare, which was welcomed by FSB’s Northern Ireland Policy Chair, Alan Lowry. He called the move a step forward, reiterating FSB’s calls for the Government to give the childcare sector direct, short-term support while the long-term strategy is developed. Northern Ireland lags behind the rest of the UK in the provision of childcare and there was unanimous political support to implement high-quality, affordable childcare as a flagship policy for the new Northern Ireland Executive.
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