Energy Department and Ofgem adopt FSB proposals to protect small firms
Small businesses welcomed the energy regulator Ofgem and the Department of Energy Security and Net Zero’s proposals to provide greater protection for small businesses, answering calls from FSB to narrow the treatment gap between domestic customers and SMEs. FSB Policy and Advocacy Chair Tina McKenzie said: “We’re pleased the energy regulator has listened to our calls to take action against poor customer services. Today’s announcement is encouraging news, and we hope these proposals will be implemented swiftly.” The proposals include measures to expand access to the energy ombudsman service, broaden the scope of the standards of conduct to apply to businesses of all sizes, and increase the transparency of brokers.
FCA’s decision to maintain small businesses’ access to cash welcomed
Following continued calls from FSB for the Government to protect small businesses’ access to cash, the Financial Conduct Authority (FCA) announced proposals to maintain cash withdrawal and deposit facilities for UK businesses. FSB National Chair Martin McTague welcomed the FCA’s proposals, with cash remaining a key payment method for many small businesses and customers alike, saying: “Too many times we have heard from small firms who are deeply concerned about the closure of the ‘last branch’ in their area, with knock-on effects on cash. It’s heartening to see the FCA respond with proposals to protect people’s ability to access cash.” The FCA proposals also strongly support FSB’s policy recommendation to establish banking hubs as a way of maintaining access to cash for rural firms and communities, outlined in the FSB report Streets Ahead.
Small firms warn against impact of VAT hike on some private hire cab fares
FSB took part in a roundtable with MPs in Parliament this week to discuss the potential threat of VAT being added to private hire taxi fares as a result of a court judgment. Hosted by the Night Time Industries Association (NTIA), FSB raised concerns about the impact a 20 per cent hike would have on customers, coupled with the financial and administrative strain of what is known to be a hard-to-administer tax on already under-pressure self-employed drivers. FSB says the hike would result in a reduction in the number of fares and the economic fallout would impact small businesses whose customers rely on taxis, especially in rural areas and late at night, where public transport is not always available.
Shadow Business and Trade Minister meets with FSB in Belfast
Shadow Secretary of State for Business and Trade Jonathan Reynolds MP was welcomed by FSB Northern Ireland Policy Chair Alan Lowry to FSB’s Belfast offices this week. During the meeting, FSB raised the importance of collaborative efforts to tackle issues in international trade and discussed the role of the Labour Party’s Small Business Export Taskforce, the Windsor Framework, business rates and childcare.
FSB invited to 10 Downing Street following work on Procurement Bill and late payments
Following FSB’s work on the Procurement Bill, which passed into law this autumn, and work on late payments, FSB Policy Champions Arnab Dutt and Tim Colman attended a reception at 10 Downing Street this week. The Procurement Act will have several impacts on small businesses that bid on public procurement contracts: Public contracting authorities must now not require suppliers to have pre-existing insurance before bidding on contracts, and firms will no longer have to evidence their cashflow and turnover to bid. The Act also makes it explicit that all public authorities should pay their suppliers within 30 days.
Tackling counterfeit banknotes: Bank of England joins forces with FSB
To help protect smaller businesses from the risks associated with accepting counterfeit banknotes in the run up to Christmas, and beyond, the Federation of Small Businesses (FSB) announced a new strategic partnership with the Bank of England’s Banknote Checking Scheme. Cash is the number one payment method for 25 per cent of small high street businesses. Sarah John, Chief Cashier and Executive Director Banking at the Bank of England, said: “The continued success of the Scheme relies on key industry stakeholders such as FSB to raise awareness and to help us ensure the Scheme continues to provide what helps their members the most.” The Banknote Checking Scheme is free for businesses to join. The new King Charles III banknotes are expected to enter circulation in mid-2024.
Pensions: Does your small business employ seasonal staff?
The Pensions Regulator is reminding small business owners that employ temporary staff during the Christmas period to check that they’re compliant with their legal duties regarding pension automatic enrolment (AE). The guidance includes advice on seasonal workers, and how to ensure that they are correctly enrolled.
Welsh Government launches new economic mission for small firms
The Welsh Government launched new priorities to deliver a stronger economy in Wales. The plan’s launch coincided with the Welsh Economy Minister’s Summit, which brought together stakeholders to discuss how to make a stronger, fairer, and greener Welsh economy. FSB discussed the findings of its report, A Skills-Led Economy for Wales, at the summit and FSB member Patricia Porter OBE, who runs an aviation company at Haverfordwest Airfield, shared her experiences of running a small business in Wales, emphasising the impact that skills and local education providers have on the business. The launch of the economic mission comes as small firms in Wales await the next Welsh Government Draft Budget, which will set spending priorities for the year ahead.
Imports: Make sure your business is ready for changes to animal product imports
There will be a number of changes to rules on the import of animal products from EU and European Free Trade Area (EFTA) countries into Great Britain from 30 April under the Border Target Operating Model. The Department for Environment and Rural Affairs is running an information session on 11 December on how your small business will be impacted by the changes, and how you can prepare for the new regulations.
Trade: Delay in EU electric vehicle tariffs
The EU has proposed a delay to the introduction of tariffs on electronic vehicles (EVs) and their batteries traded between the UK and EU until 2026. Under the EU's new rules of origin, 10 per cent tariffs were due to apply from January 2024 for EVs traded between the UK and EU, unless they contained batteries that were produced in either the UK or EU.
Trade: We want your views on export policy
Small firms that trade beyond the UK still have the chance to help deliver a better quality of export support by taking part in FSB’s latest survey before 10 December. Unlocking the export potential of small businesses is vital to driving UK economic growth. The survey findings will help formulate strong and pro-small exporter policy recommendations to the UK Government to deliver better international trade support. Click the link to complete the survey: https://www.fsbbigvoice.co.uk/ExportSupport
Supporting employees with a terminal illness
The What Works Centre for Wellbeing and Marie Curie have published an introductory guide on work and terminal illness, and how small business owners can support employees effectively during terminal illness. The guide is designed to provide insights and information based on lived experience, which employers can use to develop policies and recommendations aligned to their particular organisation and employees, and important topics to be aware of when supporting staff members.
Fraud: Deep fakes targeting small firms
Action Fraud is warning small business owners to be on the lookout for deep fake technology, which is being used to deceive, defraud, harass, and extort business owners through scams. Deep fake allows fraudsters to clone a target’s voice, or to recreate their face, and engage in fraudulent communication with a target - frequently in the form of video and audio communications. Action Fraud is encouraging small businesses to be cautious of suspicious communications, including phone calls, and take reasonable precautions to protect sensitive information. You can report any suspicious activity to Action Fraud.
Survey: Has your small business received a grant from DESNZ?
The Department for Energy Security and Net Zero (DESNZ) is asking for small businesses that have received a grant to complete a short survey on their experience. The survey looks at the type of grant received by DESNZ, and the experience of small businesses when applying for and receiving grants.
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