More hustle, less bureaucratic bustle in tax rule change
The Government announced plans which would mean thousands of people with side hustles not having to fill in a traditional tax return. Those affected would be able to earn up to £3,000 rather than the current £1,000 before the old-fashioned-style paperwork would kick in, although tax would still need to be paid on earnings above £1,000. FSB is campaigning for a Side Hustle Allowance which would allow tax-free earnings up to £2,000 - doubling the current tax-free trading allowance. This is a key ask in the recent Generation Entrepreneur report by FSB and Simply Business, aimed at increasing the number of young entrepreneurs in the UK.
Pro-growth regulation reform a welcome plan
FSB welcomed the Prime Minister’s commitment to reforming regulation to reduce barriers to growth. Keir Starmer set out his plans in a speech in Hull, in which he cited the experience of an FSB member as an example of how over-burdensome regulation can hold back small businesses. FSB has made a number of recommendations to the Government as it challenges regulators to draw up plans which will ease the burden. This includes a call for the Financial Conduct Authority to clamp down on banks’ over-use of requirements for personal guarantees on business loans to company directors.
GDP contraction in January
The Office for National Statistics reported that GPD fell by 0.1 per cent in January, but rose by 0.2 per cent in the three months to January 2025. Production output, which fell by 0.9 per cent in the month, was the largest contributor to the fall.
Government to investigate access to finance for SMEs
A Call for Evidence made by the Department for Business and Trade on access to finance for SMEs was welcomed by FSB. Among many other strands, FSB’s response will look especially at the issue of personal guarantees, where there is scope for Government action to make them less of a barrier to the risk-taking which is key to growth among start-ups and scale-ups. Details on the topics to be covered, and how to respond to the call for evidence are available on the Government website.
Have your say on issues affecting your business
FSB’s latest Small Business Index (SBI) survey for the first quarter of 2025 is now open. The SBI is a vital, quarterly temperature check for the small business community across the UK, and the results form the basis of FSB’s campaigning with Government and other decision-makers. The survey only takes a few minutes and is open to all small business owners until 24 March.
Celebrating high streets in the tourism sector
The crucial role high streets play in the tourism industry was highlighted by FSB at the start of English Tourism Week (14 – 23 March). “To allow our high streets to flourish as destinations, helping to fuel the economy, we need policies that support businesses and champion a variety of attractions,” said FSB Policy Chair Tina McKenzie. The annual VisitEngland campaign raises awareness of the contribution the sector makes to the UK economy, supporting 200,000 SMEs, employing 2.6 million people and generating about £71.6 billion annually in domestic visitor spending. FSB’s The Future of the High Streets report is available online.
FSB’s trade mission to Washington
This week, FSB held its annual business roundtable in Washington. During the meeting, FSB was given an in-depth briefing about the latest developments from US President Donald Trump’s Government. FSB Policy Chair Tina McKenzie met politicians and key decision-makers and spoke to BBC News and UTV about the potential impact of US tariffs and potential opportunities for Northern Ireland trade created through the Windsor Framework. FSB also met with the US National Small Business Administration to discuss opportunities for strategic cooperation between SMEs on both sides of the Atlantic. Tina McKenzie also attended a reception at the White House alongside Alan Lowry, FSB Policy Chair for Northern Ireland, where President Trump delivered a speech after meeting with Irish Taoiseach Micheál Martin.
Small music companies set to benefit from new funding
Small and medium sized music companies are set to benefit from the latest round of government funding designed to boost music exports and drive growth. The Music Export Growth Scheme (MEGS) will support 58 UK artists to tour the world with a fund of £1.6 million issued by the Department for Business and Trade and the Department for Culture Media and Sport.
Changing planning reform for small construction firms
Government introduced a new Planning and Infrastructure Bill to Parliament in a bid to speed up planning decisions and increase housebuilding across the UK. Small and micro businesses are a fundamental part of the construction sector and it's crucial they are put front and centre of planning reform. FSB believes it will not be possible to reach ambitious housebuilding targets without the contribution of small construction firms.
New code of practice for AI security
The Department for Science Innovation and Technology (DSIT) has launched a new AI cyber security Code of Practice and implementation guide, to help businesses that use and develop AI stay safe. FSB’s Redefining Intelligence report (2024) shows that 31 per cent of small businesses are concerned about their ability to manage AI securely and manage the security risks. FSB fed into the initial development of the AI implementation code and campaigned for the Government to make AI security resources more widely available for small businesses.
FSB gives evidence to the Work and Pensions Committee
FSB’s policy champion for employment, Saira Hussain, gave evidence to the House of Commons Work and Pensions Committee on the importance of reforming Jobcentres. She told the committee that many small employers have had negative experiences. According to FSB’s Scaling Up Skills report, only 5 per cent of all small businesses say they collaborate with Jobcentre Plus to meet their skills needs. She also told the committee that tailoring Jobcentre services to better suit the needs of SME recruitment are vital, with many Jobcentres prioritising the hiring needs of larger businesses. Watch the full session on the Parliament TV website.
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Copyright: Federation of Small Businesses (FSB Westminster) 2025. All rights reserved.