New employment laws to affect small firms under plans in King’s Speech
Small employers face having to navigate a number of strands of new legislation, following Government proposals set out in this week’s King’s Speech at the State Opening of Parliament. In response, FSB highlighted that nine-in-ten small employers told us in a recent survey that they had concerns the new Government would increase the costs and risks associated with employing people. The full details of the proposed legislation have yet to be published. Meanwhile, FSB highlighted the omission of legislation to tackle poor payment practices by big businesses to their smaller suppliers. FSB Policy Chair Tina McKenzie said late payment “hampers cashflow and stifles investment, and we call on the Government to look again.”
Small firms must be included in decarbonisation plans to help get net zero back on track
The Climate Change Committee’s new Progress in reducing emissions: 2024 Report to Parliament recommended steps to get the UK back on track with achieving net zero, including making electricity cheaper, and removing planning barriers for heat pumps, electric vehicle charge points and onshore wind. Martin McTague, FSB’s national chair, told the Daily Mail and the Independent that small firms must be included in decarbonisation plans, and their needs must not be overlooked.
Inflation holds, as small businesses hope for cut to base rate
The Consumer Price Index rose by 2 per cent in the year to June according to new figures from the ONS, unchanged from May's figure. With inflation now achieving the Bank of England's target, small firms are hoping this will be followed by a cut to the base rate by the Bank of England in August, which currently stands at 5.25 per cent.
New secretary of state for Scotland meets with FSB
Ian Murray, the newly-appointed secretary of state for Scotland, met with FSB, alongside Kirsty McNeill, under-secretary of state for Scotland, to discuss the importance of the Government creating the right conditions for growth so that businesses in Scotland can thrive. FSB will continue to engage with the new Ministerial team to ensure that the voice of small businesses is heard.
VAT registration detail changes move to online
From 5 August, business VAT registration details will only be able to be changed online, HMRC has said. The form ‘VAT 484’ will be restricted in most instances from that date, with use limited to customers who are unable to access and use HMRC’s digital services.
Taxi tax ruling overturned
The Court of Appeal has reversed an earlier ruling that would have meant that all taxi rides outside of London would be subject to VAT, a decision which will be greeted with relief by many small taxi operators and drivers.
Misleading marketing of green products and services
Some business practices could potentially mislead consumers in the marketing of green heating and insulation products and services, particularly in claims made on websites and other marketing channels, the Competition and Markets Authority (CMA) has found. In response, the CMA published new compliance advice for businesses.
Stability needed following resignation of First Minister, Wales
Following the resignations of Wales’s first minister, Vaughan Gething, and economy minister, Jeremy Miles, this week, FSB called for clarity on the process for electing the new Welsh Labour leader to provide stability and certainty for small businesses. FSB emphasised that the new first minister will need to show that they can drive forward the change needed to build a thriving and diverse Welsh economy. Also, this week, FSB joined the new Welsh Government minister for social partnership, Jack Sargeant MS, for a South-East Wales business engagement discussion.
Regulatory help for AI innovators
Small businesses launching a new AI or digital product, service or business model can access free advice from industry regulators, to help them navigate regulatory requirements. The AI And Digital Hub pilot, from the Digital Regulation Cooperation Forum, gives informal advice on digital-related issues from a number of regulators including the Competition and Markets Authority and the Information Commissioner’s Office. Businesses can also submit requests for joint responses from two or more regulators if an issue under the remit of more than one regulator.
Shaping a fair market for the ceramics sector
The Trade Remedies Authority, the body responsible for protecting UK businesses against unfair international trade practices, is inviting businesses that buy or make ceramic tableware or kitchenware to share views on the current state of the market. This is part of a wider consultation from the government examining the effect of goods exported from China on UK businesses and consumers, particularly concerning tariffs. It also looks at the competitiveness of UK-made ceramic goods in a global and domestic market. Take the survey by 18 August 2024.
EU import invoices
Businesses that are eligible for common user charges levied on certain EU imports will begin to receive invoices shortly - approximately twelve weeks after the introduction of new border controls on 30 April. The common user charge applies to all UK businesses importing goods through the port of Dover and Eurotunnel, and to any goods eligible for sanitary and phytosanitary checks at a border control post in England (plant and animal products). After the first invoice, traders will be invoiced monthly, in arrears. More information on eligibility, rates, and how to pay is available on the gov.uk website.
New customs declarations system
From 17 July, businesses that trade internationally are no longer able to submit new export declarations through the Customs Handling of Import and Export Freight (CHIEF) system. Following the introduction of the Customs Declaration Service (CDS), businesses will still be able to view or amend existing export declarations through CHIEF, but these must be finalised by 31 August 2024. Businesses can submit queries on the transition to the new system directly to HMRC.
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