General Election 2024: Parties will need to compete for the votes of millions of small business owners
Prime Minister Rishi Sunak called a snap General Election to take place on 4 July and FSB’s national chair Martin McTague told the BBC’s Today programme: “Small business owners and self-employed people will be looking for which party puts forward the most compelling pro-growth, pro-business policies to stimulate the economy and encourage entrepreneurship. Those running the UK’s 5.5 million small firms are a significant and motivated section of the electorate. A further 16 million voters are employed by small businesses. There will be fierce competition for their votes at this election, and those competing will need a convincing plan to bring down the cost-of-doing-business, to support small businesses to grow, and to create the right conditions to encourage new businesses to start up.”
Championing voter registration
As an ambassador of the Voter Registration Champions campaign, FSB is encouraging its small business members to join the Voter Registration Champion movement. The initiative aims to mobilise a movement of civil society organisations, community groups, and employers to make sure voters can exercise their right to vote at the General Election. The Voter Registration Champion scheme is an initiative of Citizens UK, supported by the UK Democracy Fund.
Small firms hopeful as inflation falls to lowest level since 2021
Inflation fell to 2.3% in the year to April 2024, down from 3.2% in March – its lowest level in nearly three years, although it isn't yet at the 2% target. The news was welcomed by small businesses, many of whom are still reeling from the effects that spiralling prices have had on them since inflation’s peak in October 2022. FSB Policy and Advocacy Tina McKenzie said: “Small firms are still having to adjust to prices that are significantly higher than they were a couple of years ago.” She added that all eyes are now set firmly on the Bank of England which will announce its next base rate decision in June. This follows news that the International Monetary Fund (IMF) recommended the Bank of England decrease the base rate to 3.5% by the end of 2025, down from its current level of 5.25%.
FSB’s national chair calls on small businesses to get involved in The Big Help Out
FSB’s small business and self-employed members are supporting The Big Help Out – the UK’s biggest volunteering event, taking place 7-9 June. National Chair Martin McTague told FSB members: “Last year, as part of The Coronation, The Big Help Out was launched. It’s a nationwide campaign that helps millions of people, including FSB members, volunteer via a website and app populated by tens of thousands of charities. Of the 2,000 or so firms that participated, smaller firms made up the vast majority. The Big Help Out is returning this summer and once more has the support of the Federation of Small Businesses and the Royal Household. At the launch, The King declared that “business is a vital part of the fabric of both our local communities and of our wider society.” I think this applies most to small businesses and the self-employed. So, have a look through the new FSB/The Big Help Out business pack, get involved, and build on the vital work in communities that so many of you already do.”
Important update on pre-settled status under the EU Settlement Scheme
The Home Office will remove the pre-settled status expiry date from digital profiles shown to third parties in the online checking services performed for Right to Work checks. Employers will not be required to conduct a further right-to-work check where the individual remains in their employment. More information on the changes can be found on the gov.uk website.
APPG Fair Business Banking SME manifesto launches
The All-Party Parliamentary Group on Fair Business Banking launched its SME Manifesto, which FSB contributed to developing. The manifesto includes ways a new Government could “turbocharge” the challenger and non-bank lending sector to increase competition; how to improve the protections for small business borrowers and revamp how SMEs can access justice following poor treatment from lenders; and help small firms to navigate the confusing array of options available to them, all of which are supported by FSB.
Card fees are a burden for smaller retailers
The Payment Systems Regulator (PSR) published an interim report into the fees that businesses pay to card companies in order to process digital payments, and has found that “Mastercard and Visa – the two biggest card schemes – do not face effective competition” in some key areas. This has led to scheme and processing fees rising by over 30 per cent in real terms over the past five years, the PSR said. Tina McKenzie, FSB’s policy chair, told Financial Times that card fees are a “burden” for small retailers, “taking a bite out of almost every sale, and adding to the financial pressures they face”.
Banknote checking resources for retailers and businesses
The Bank of England has published updated advice for retailers and businesses with free training materials showing best practice for checking its banknotes are genuine, including Her late Majesty Queen Elizabeth II and HM King Charles III designs. Videos, digital training and print copies are available on the website. The King banknote designs will enter circulation on 5 June. The new notes have the same visual security features; therefore, all denominations should be checked in the same way as for existing Queen Elizabeth II notes.
3,000 entrepreneurs in the Armed Forces start-up funding milestone
X-Forces Enterprise and the Start Up Loans programme, part of the British Business Bank, marked the milestone of providing the 3,000th entrepreneur in the Armed Forces community with the funding and support to start a business. Since 2013, this partnership has provided a total of £33.5 million in funding and support, catalysing fulfilling new careers for service leavers, veterans, reservists, and military spouses. The cumulative impact extends beyond individual success stories, with more than an estimated 10,000 jobs created and sustained. The recipient of the 3,000th loan was a Thai restaurant owner in Warrington.
FSB submits consultation response on restricting the promotion of foods high in fat, sugar, and salt in Scotland
FSB submitted a response to the Scottish Government’s consultation on restricting the promotion of food and drinks high in fat, sugar or salt, this week. The Scottish Government’s proposals will currently affect small businesses with 50 or more employees who offer pre-packaged foods for sale, including independent convenience stores. FSB said the proposals would have a disproportionate impact on small businesses, compared to larger supermarkets and chains. FSB asked that proposals be developed in collaboration with small business owners and include an assessment of their impact. FSB has also recommended that new regulation remains consistent with the UK Government.
Greater access to finance for disabled entrepreneurs
The Lilac Review, the Government-backed independent review to tackle inequality faced by disabled-led businesses and disabled entrepreneurs, published its interim report. FSB’s disability policy champion, Mark Esho, contributed to the report, which included some positive recommendations, including the announcement of a Disability Finance Code to help disabled entrepreneurs finance and scale-up their businesses. The code was a key recommendation of FSB’s Business Without Barriers report, which found that one in four small business owners are disabled or have a long-term health condition.
Navigating dual market access and the Windsor Framework in Northern Ireland
As Northern Ireland seeks to maximise the opportunities of dual market access and navigate the challenges of the Windsor Framework, FSB in Northern Ireland attended a roundtable discussion this week for key stakeholders, hosted by Kieran Donoghue, the chief executive of Invest Northern Ireland - in partnership with Northern Ireland’s Department for the Economy, Queen’s University Belfast, the University of Sussex, and the UK Trade Policy Observatory. The findings of two significant research reports were presented which considered the regulatory implications of dual market access and the Windsor Framework.
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