Budget plea to help business out of crisis
THE Federation Of Small Businesses is calling for the ‘most pro-business, pro-self-employed Budget ever’ this autumn to protect and drive the growth of struggling small firms hit by the Coronavirus pandemic and Brexit uncertainty.
The call follows the latest retail figures from the ONS indicating rising sales across the UK, despite data showing that the UK has officially entered a recession, and that its trade deficit widened to £8.6 billion in Q2 of this year.
“We need the most pro-business, pro-self-employed Budget ever this autumn, one that lowers the costs of innovating and bringing great goods and services to market and avoids tax rises,” said Michael Sandys, Federation Of Small Businesses area leader for Liverpool City Region.
“Many small firms have been only open for a matter of weeks, but the support that was on hand such as the job retention scheme, incentives like Eat Out To Help Out and access to funds via local authority grants are all going to be closing or wound down over the next few weeks or months, which means that the struggles for small businesses show no end in sight.
“We are in the midst of the deepest recession on record, and we need the Government to take a proactive approach to how it will support business right across the country. After months of measures to ensure job and business survival, the next stage is about how we can grow once again to aid business and job creation.
“The green shoots of the economy are visible, but we cannot see these and become complacent, for some firms it will take many months and potentially years to fully recover from this crisis.”
Among the measures in its submission to Government, FSB is calling for a cut to employer national insurance contributions, backing for the New Enterprise Allowance and Start-Up Loans Programme, ambitious investment in our infrastructure networks – not least broadband – more small firms being taken out of the regressive business rates system and the end of a worsening £23 billion late payment crisis.
Michael Sandys added: “More than a million firms have now taken on bounce back loans to see them through this incredibly challenging period.
“They now need a guarantee that they won’t have to start paying them back until they’re making a profit.
“Such an assurance will encourage them to invest and expand today, rather than hoarding cash for fear of what’s coming down the line.
“In four months the UK will transition to its new relationship with the EU but we still have no idea what that relationship will look like.
“When EU-UK talks having now resumed, we need to see negotiators on all side accelerating their efforts to agree a pro-business deal in acknowledgement of the fact that time is of the essence.’’
Mr Sandys continued: “It’s been encouraging to see UK efforts to strike new trade deals.
“It’s critical that any new UK free trade agreements include a dedicated small business chapter spelling out exactly how each deal will protect and promote the interests of the UK’s 5.8million small businesses.”