With many small firms facing a toxic combination of rocketing inflation, high taxes and soaring energy costs, FSB NI has outlined a clear plan which, if adopted, would see assistance being quickly directed to the most vulnerable SMEs by using the existing small business rates relief scheme.
In the absence of a functioning Executive, but with a clear need for locally delivered measures, FSB believes that its recommendation is both feasible and reasonable.
Tina McKenzie, FSB Policy and Advocacy Chair said:
“The magnitude of the cost-of-living and cost-of-doing-business crises means that now is the time for action, not words. “There are critical steps the UK Government at Westminster must take, such as reversing the National Insurance hike, lowering VAT and fuel duty, and helping small businesses with energy bills, but specific local measures at Stormont must also be forthcoming.”
“After examining a range of possibilities and considering the limitations caused by the absence of a functioning Executive, we have proposed that the Department of Finance uses the pre-existing Small Business Rates Relief scheme regulations as a vehicle to allocate additional assistance by increasing reliefs to businesses.”
“This recommendation would involve doubling the current discount granted by the scheme, for the nine months of the financial year from July 2022 to March 2023.”
“Our proposal, which would cost around £15m, would help protect thousands of micro and small businesses which are most exposed to the cost-of-doing-business crisis.”
“We believe that what we are outlining is not only achievable but will command the support of politicians, people, and businesses.”
“We urge Minister Murphy to consider the proposal and to engage with his Ministerial colleagues so that micro and small businesses are not forgotten and left unaided as they are battered by the same economic storms that are affecting the wider population.”
“Precedent has already been set for Ministers to take decisions of a cross-cutting nature without an Executive being in place, by entering into sensible dialogue with colleagues. Given the scale of the current crisis, and the expectations that it will get steadily worse, the time has come for action to assist the most vulnerable businesses which are often key local employers.”
Click below to read the letter in full
Proposal to help SMEs with the crisis in the cost of doing business