Spring Budget: Increase in VAT threshold, but firms still face challenges
Chancellor Jeremy Hunt delivered his Spring Budget this week, which included a package of small business support the Federation of Small Businesses (FSB) had called for. These include raising the VAT threshold, commitments to make progress on cutting the HMRC administrative burden and the national roll out of the Business Energy Advice Service. Other positive measures include extending the Recovery Loan Scheme under a new name – the Growth Guarantee Scheme. However, while it was good to see the Employment Allowance maintained for another year, it should have been uprated to keep in pace with the National Living Wage. FSB’s Policy and Advocacy Chair Tina McKenzie said: “There’s still a real gap when it comes to the crunch small firms are facing – and the growth, jobs, and economic security small businesses provide is not something the country can afford to risk.” She also appeared on GB News, the Independent and This is Money while FSB National Chair Martin McTague was on LBC News. FSB also appeared on BBC Breakfast and BBC Radio Five Live.
Financial Conduct Authority response to super-complaint “illogical”
The Financial Conduct Authority (FCA) responded to FSB’s super-complaint on the “excessive” use of personal guarantees by banks this week. However, the regulator has refused to gather evidence from regulated lenders on their use – something FSB branded “illogical.” Personal guarantees seen company directors putting their homes or other assets on the line when taking out loans. FSB National Chair Martin McTague told The Times: “The FCA’s response just isn’t good enough. There’s a potentially systemic problem when it comes to personal guarantees and the chilling effect they have on growth and investment.”
New AI report: Technology must be regulated
FSB published its latest report, Redefining Intelligence: The Growth of AI Among Small Firms, on Monday. The report shows that while 20 per cent of small firms are already using AI, 73 per cent are yet to embrace it due to concerns relating to intellectual property and deepfakes – highlighting the urgent need for regulation. However, it was welcome to see the Chancellor’s Spring Budget contain details about an AI-training programme for SMEs. FSB Policy Chair Tina McKenzie said: “It’s more important than ever to prove AI is our ally, not a foe.” FSB member, Ohbot, which design educational robots, also helped mark the report’s launch.
BBC Radio 4’s Any Questions
FSB Policy Chair Tina McKenzie appeared on BBC Radio 4’s Any Questions in Northumberland last Friday, ahead of the Spring Budget. She joined a panel of three MPs – Hilary Benn, Jacob Young and John Nicholson – to discuss the issues facing the UK, including VAT, the tax on jobs, and how chain shops closing down affects the wider economy.
High streets: FSB gives evidence to the Lords Built Environment Committee
FSB gave evidence to the House of Lords Built Environments Select Committee this week, on the importance of high streets in towns and cities. FSB’s retail policy champion, Michael Weedon, told the Committee about the importance of supporting small businesses to ensure that high streets and their surrounding areas prosper. During the session, he discussed how Raising the current threshold for Small Business Rate Relief (SBRR) from £12,000 to £25,000 would shield around 250,000 small firms from the burdensome rates system, helping them to thrive. Watch the session here.
Improving menopause support in the workplace
This week, FSB attended a roundtable event hosted by Minister Mims Davies at 10 Downing Street focusing on employer support for people affected by menopause in the workplace. The event, attended by FSB Policy Advisor Rebecca Hyrslova, also drew on the theme of this year’s International Women’s Day to ‘Inspire inclusion’ and how menopause support can become more inclusive. During the roundtable the Menopause Employment Champion’s 12-month progress report, Shattering the Silence about Menopause, which launches on International Women’s Day on 8 March. The event was also used to re-launch of the Menopause and the Workplace Resources Hub on the Help to Grow portal.
Trade: FSB gives evidence to the Commons Business and Trade Committee
This week also saw FSB's head of international affairs, Kate Foster, give evidence to the House of Commons Business and Trade Committee on how export-led growth can support small businesses. She told the Committee that the Government should develop a more comprehensive SME-focused export strategy, with detailed SME export targets. By offering firms the resources they need to successfully start, or scale-up exporting operations, the Government can enable small businesses to export more, and more successfully. Watch the full session on Parliament TV.
Banking: Getting small firms a fair deal on their savings interest
FSB is supporting Allica Bank’s new campaign to get SMEs a fair deal on their savings interest rate. Small businesses lose out on £7.5 billion per year in savings interest according to figures from Allica Bank. The Campaign is calling on the Government and regulators to do more to ensure small firms get a fair deal on their savings by making it mandatory to notify firms of better savings rates, ending savings penalties for SMEs, and increasing protections for SME deposits. Craig Beaumont, FSB’s chief of external affairs said: “Britain's army of small firms have enough on their plates without having to worry about the rates they're getting on their hard-earned savings.”
Wales: Businesses in North Wales Gather for Business Dinner
The March for Business Dinner took place this week, which is part of the broader "March for Business" initiative in Denbighshire, North Wales. The event, supported by FSB, is a key event for businesses across the area and promotes the importance of small businesses across North Wales. Approximately 100 attendees from across North Wales attended, allowing business owners to network with other attendees such as Denbighshire County Council, the Ministry of Defence, Business Wales, and North Wales Police and Community Trust, and share information about support available for small businesses in Wales.
Northern Ireland: Expanding trade in the United States
An FSB delegation, led by FSB Policy and Advocacy Chair Tina McKenzie MBE, travels to Washington DC next week to meet with senior US, UK and EU politicians during the lead up to St Patrick’s Day. FSB will be hosting its ‘Power of Small Business’ Roundtable in Washington DC which will be attended by Joe Kennedy III, the US Special Envoy to NI for Economic Affairs, the Rt Hon Chris Heaton-Harris MP Secretary of State for NI, along with a number of other representatives from organisations from the UK, Ireland and United States.
International Women’s Day
FSB marked International Women’s Day (March 8) by joining forces with the Trade Association Forum (TAC) and the Confederation of British Industries (CBI) to judge and compile a ‘Powerlist’ of women in trade associations. A reception will be held at the British Museum on 14 March to celebrate the list, with all welcome to attend, but tickets must be pre-booked in advance. Elsewhere, FSB marked IWD 2024’s #InspireInclusivity theme by highlighting issues affecting women in business, such as access to finance and maternity pay.
Sign up to receive the Weekly Brief direct to your inbox
Keep up to date with all the latest small business news each week by having the FSB Weekly Brief sent directly to your email inbox.