Small firms call out energy suppliers for soaring, stealth standing charges
This week, FSB raised concerns about rises in standing charges some energy suppliers are imposing on business customers. While standing charges are capped for household customers, many business customers are seeing hikes for the second consecutive year, with no way to challenge them. FSB would like to see greater transparency on suppliers’ calculations, exclusion of Supplier of Last Resort (SOLR) acquisition costs, and for Ofgem to work with suppliers to narrow the discrepancy of standing charges between rural and urban areas. FSB National Chair Martin McTague told The Guardian, This is Money and SME Web: “Energy suppliers have some explaining to do on the sudden and dramatic hikes in standing charges, which become a regressive form of billing that hampers small business growth, confidence, and investment.”
Jobs warning ahead of Spring Budget
FSB warned this week that figures from its latest Small Business Index (SBI) show that one in seven small firms cut staff in the last quarter of 2023, with just one in ten hiring more. This prompted FSB’s calls to raise the Employment Allowance from £5,000 to £6,500, a move that should be announced in the Spring Budget. This would help support businesses manage the rising costs associated with the National Living Wage in April. If employers’ National Insurance Contributions (NICs) remain unchanged from April 2024, the current £5,000 allowance will only be sufficient for three full-time employees, as opposed to the four it was originally intended to support. FSB National Chair Martin McTague said: “Without an increase in the Employment Allowance, small firms will continue to be cornered by a steep climb in staffing costs and associated taxes. This is a drag on growth and adds fuel to the fire of rising expenses.” This was featured in the Daily Mail.
FSB gives evidence to the Work and Pensions Select Committee
This week, FSB Policy and Advocacy Chair Tina McKenzie gave evidence to the Work and Pensions Select Committee during its hearing on statutory sick pay. She spoke about low-cost ways the NHS and the Government could better support those returning to work following a sickness absence. She raised the importance of greater collaboration between the Department for Work and Pensions (DWP) and GPs, and that more detailed advice from GPs during the recovery process can help expedite a phased return to work. The full Select Committee session can be viewed online.
Growing small businesses: Government and Opposition announce pro-SME plans
FSB National Chair Martin McTague was at 10 Downing Street this week, for the launch of the Government’s new plan to support small business growth – the Help to Grow initiative. This is something FSB has campaigned for to help SMEs scale-up. The Government also announced that its current Small Business Council, which FSB is part of, will now be chaired by the Prime Minister’s office from next month. Meanwhile, FSB’s Policy Chair Tina McKenzie met with Shadow Chancellor Rachel Reeves to discuss a range of small business issues, from skills to investment opportunities, at the Labour Party’s business conference.
FSB meets with Minister for Trade on CPTPP
The Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) comes with a Small Business Chapter, which FSB successfully called for. At a roundtable on Thursday, Head of International Affairs, Kate Foster, told Minister for Trade Greg Hands that many countries from the trading bloc are significant export markets for UK small firms. She also put forward proposals to lower the cost of trade for SMEs.
Energy Efficiency Week: Why SMEs need greater government support
Energy UK has been working with industry stakeholders as part of Energy Efficiency Week, which began on 29 January. FSB’s Filippo Pollara joined an expert panel on 1 February to discuss what is needed to help SMEs lead the way to Net Zero and gain resilience in the face of high energy bills. FSB said that SMEs need greater policy support from the UK Government to invest in energy-saving and money-saving energy efficiency measures and low-carbon technologies. Other panellists were from Energy UK, Bankers for Net Zero, and the Department for Energy Security and Net Zero.
Bridging the gap between skills and immigration policies
FSB Head of Policy Research, Emelia Quist, was among a panel of experts at a Public Policy Exchange webinar on Thursday, where she spoke about the need for a closer alignment between skills and immigration policies. FSB suggests using the Immigration Skills Charge to restore the financial incentive for small employers hiring an apprentice. Where relevant, there should be a £1,000 cap on visa fees to support small employers recruiting international talent in skilled roles.
Supporting Hong Kong entrepreneurs
FSB attended the Welcoming Committee for Hong Kongers event for the three-year anniversary of the British National (Overseas) Visa scheme this week. FSB has and continues to offer support to entrepreneurs and business owners from Hong Kong seeking to set up businesses in the UK, offering a bespoke package of support for their journey.
Is your business rates agent adhering to professional standards?
The Valuation Office Agency (VOA) has updated its guidelines on professional standards for business rates agents. Any business looking to appoint an agent to act on their behalf should conduct thorough checks on the agent’s background and professional standing before entering into a contract with them. The VOA recommends that small businesses calculate their rates on the VOA’s rates site to check if an agent is required before referring to the VOA's guidance on appointing an agent.
Late payments: Small Business Commissioner launches #ToolUp campaign
The Office of the Small Business Commissioner (OSBC), this week launched a social media campaign called #ToolUp, which will run until 7 February. The campaign aims to provide small businesses with guidance to help them avoid delayed payments, such as negotiating terms and conditions, creating contracts, invoicing, what to do immediately in the case of non-payment, and how to have difficult conversations. Resources can be found on the OSBC’s website.
Research and Innovation: Horizon Europe funding
Innovate UK, the Government’s national innovation agency is now working with Horizon Europe. Horizon Europe is the world’s largest research and innovation (R&I) programme, with a budget of over £82 billion. The programme runs from 2021 to 2027, and it is open to all types of R&I organisations, including large businesses, SMEs, academia, and public institutions. Monthly Horizon Europe Q&A sessions will be an opportunity for SMEs and other organisations to ask any questions about upcoming Horizon Europe funding for research and innovation.
Energy theft: Know the signs
Crimestoppers has launched its Stay Energy Safe campaign to raise awareness about energy theft and meter tampering. Tampering with cables, wires or pipes to bypass energy meters can lead to explosions and fatal fires. Signs your cables have been tampered with include the meter not registering energy usage even when energy is being consumed, or where there is loose or unusual wiring or sparks coming from the meter. To report energy theft anonymously, visit the Stay Energy Safe website or ring 0800 023 2777.
FSB career opportunity
FSB is recruiting for a policy advisor to oversee the development of a wide range of small business issues, including education and skills, women in enterprise, and childcare, based in FSB’s Westminster office. The ideal candidate will have experience in writing policy reports and developing policy recommendations for the Government and key decision-makers. The role also involves liaising directly with senior representatives from government departments, developing effective working relationships with key officials and civil servants, and acting as FSB’s main external point of contact on several flagship policy areas. Apply here before 18 February.
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