New report shows the true scale of HMRC's failing customer services
HMRC’s poor customer service levels are causing stress, panic, and wasted time and money for small firms. In a new report, HMRC Customer Service, the National Audit Office (NAO) found that nearly half of calls to HMRC go unanswered. FSB said that tax compliance is a huge headache for small firms, who spend on average 52 hours a year trying to sort out how much they need to pay, at a collective cost to small firms of £25 billion. In response to the report, FSB’s Tina McKenzie told BBC News: “The problems here compound the stress for small business owners who’ve received letters from HMRC saying there’s a problem with their taxes but then cannot get through to resolve any issues. HMRC urgently needs to take a customer-focused approach.”
Regulation reforms announcement welcomed
Plans to reform the UK’s regulatory landscape were announced by the Government in a new programme of ’smarter regulation’. The announcement answers FSB’s calls to cut unnecessary regulation for small businesses, which typically suffer more from overly burdensome red tape than larger firms. FSB welcomed the move, with Policy and Advocacy Chair Tina McKenzie saying that government should seek to regulate as a last resort rather than an instinctive first response, “Measures to rethink the regulatory landscape with the aim of removing badly designed and often self-contradictory regulatory requirements will help unlock untapped economic growth and help make sure regulators focus on the needs of small businesses.”
Pubs could be able to make al fresco kerbside drinking permanent
As part of the smarter regulation programme, announced by the Business Secretary, a consultation that builds on COVID easements to make it easier for pubs and bars to provide drinks on their pavements has now opened. The aim is to help support al fresco hospitality, including an option for providing take-away and delivery sales by default.
Childcare Coalition launches manifesto with calls to scrap rates in England for the sector
The Early Education and Childcare Coalition (EECC), of which FSB is a member, launched its new manifesto this week, with proposals to rescue and reform England’s early education and childcare sector. The Rescue and Reform Manifesto highlights key priorities for the next government, including a call for sustainable and fair funding for childcare providers. In the manifesto, FSB Policy Chair Tina McKenzie said: “We need to see the right support and policies put in place to help the sector. Along with providing fair and sustainable funding rates for ‘free’ childcare hours, Government must show it cares about the sector and scrap childcare business rates in England in line with the crucial support already provided in Scotland and Wales.”
FSB’s Help to Green proposal backed by UK’s financial services sector
A proposed plan for a Help to Green voucher scheme, devised by FSB, was endorsed by UK Finance, the UK financial services trade association, as reported in The Times. The voucher scheme would offer £5,000 of funding per business to make green improvements to their premises, such as installing a heat pump, better insulation, or solar panels. Through Help to Green small firms would be able to take action to reduce their energy bills, while simultaneously cutting their carbon emissions, which is a crucial part of achieving the UK’s net zero targets. Former energy minister, Chris Skidmore, previously endorsed the scheme in his 2023 Net Zero Review.
How to handle a personal data breach: A guide for small firms
The Information Commissioner’s Office (ICO) has updated its guidance for small businesses on how to respond to a personal data breach. Personal data breaches can occur in different ways, from paper records being damaged during a flood, to laptops or hard drives containing sensitive information being lost or stolen. All organisations are legally required to report personal data breaches to the ICO within 72 hours of their discovery. The ICO’s guide outlines the necessary steps a small business should take to effectively combat a breach within the first 72 hours, as well as advice on how to remain fully compliant with the law.
The King’s Awards for Enterprise: Applications open for 2025
Small businesses can now apply online for The King’s Awards for Enterprise until 12 September. The Awards are free to apply for and recognise outstanding achievements by UK businesses in the categories of innovation, international trade, sustainable development, and promoting opportunity through social mobility. If you get an award, you’ll be invited to a Royal reception; presented with the award at your company by one of The King’s representatives; able to fly The King’s Awards flag at your main office; use the emblem on your marketing materials and be given a Grant of Appointment (an official certificate).
New support for automation in UK food supply chain announced
A new automation fund for SMEs in the fruit and vegetable sector has been announced by Defra. Making such funds available to sectors with labour shortages has been one of FSB’s key policy asks in both its Redefining Intelligence and The Tech Tonic reports, and the organisation said that it is a positive step. The Government said the fund is to help tackle labour shortages in the food supply chain, funding technology to reduce the reliance on migrant labour and providing certainty and clarity for farms and other food businesses across the UK. Government will also extend the seasonal worker visa route for five years until 2029 to give businesses more time to plan.
How small businesses can better engage with the education landscape
Small business owners who want to get involved in education and skills progression can download a free employer’s guide on the education landscape to help them find out more about the options available. The Education Landscape: A Guide for Employers, which FSB supported in drafting alongside Strategic Development Network and the Gatsby Charitable Foundation, gives an overview of the options available to employers for engaging with the education and skills landscape and the benefits of doing so.
Make sure you’re paying the National Minimum Wage correctly
HMRC is reminding employers to check they are paying workers according to the National Minimum Wage (NMW). Employers can use HMRC’s NMW calculator tool to check staff are being paid correctly. Minimum wage pay can be calculated an employee’s hourly minimum wage rate and the hours that they’ve worked. However, elements of pay, such as deductions and benefits, may not necessarily count as pay for NMW purposes, so it is important to check workers are being paid correctly based on these factors. HMRC is also running a webinar for employers on National Minimum Wage pay which will look at the different elements of pay, and how to correctly calculate NMW.
Get moving! It’s Mental Health Awareness Week
The theme of this Mental Health Awareness Week (13-19 May) is ‘Movement: Moving more for our mental health’. The Mental Health Foundation, which leads the campaign, said that regular physical activity is known to improve mental health, quality of life, and wellbeing. It also helps prevent and treat heart disease, stroke, diabetes, and breast and colon cancer, and more. Despite these benefits being well established, over a third of UK adults do not meet the recommended amount of activity. If you’re struggling, at any time, you can find information about organisations that offer listening, support and advice here.
Scotland’s new deputy first minister, Kate Forbes, meets with FSB
FSB Director of Devolved Nations Colin Borland spoke to Scotland’s new Deputy First Minister and Economy Secretary Kate Forbes following her appointment last week. Colin put forward FSB’s key recommendations for Scotland, including supporting small businesses and focussing on economic growth, including a number of the steps that the Minister could target to help SMEs trade more efficiently and cost-effectively. FSB looks forward to working with the new Deputy First Minister to make Scotland the best possible place to do business.
Northern Ireland small businesses’ showcase at Balmoral Show
FSB hosted the business and agricultural pavilion at the annual Balmoral Show, Northern Ireland’s biggest annual agricultural event. Showcasing the best of Northern Ireland’s small businesses, FSB members welcomed MPs, members of the Northern Ireland Assembly and other Northern Ireland business leaders and opinion-formers.
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