Small firms hope base rate cut will help ease pressure
The Bank of England’s Monetary Policy Committee’s voted to cut the base rate to 4.75% by eight votes to one. The fall in the base rate will slightly ease the pressures small businesses face on their margins, said FSB. National Chair Martin McTague said: “Success rates for small firms’ finance applications are still notably lower than they were on average before the pandemic, indicating that many small businesses looking to grow and invest are being held back by the borrowing environment being less welcoming than previously.”
New leader of the opposition elected
Kemi Badenoch was elected the new Conservative Party leader. The Leader of the Opposition appointed her new shadow cabinet, including Andrew Griffith as Shadow Secretary of State for Business and Trade and Mel Stride as Shadow Chancellor. Congratulating Kemi Badenoch, FSB’s national chair, Martin McTague (pictured with Kemi Badenoch), said: “FSB is fiercely independent and proudly cross-party. Standing up for 5.5 million small businesses and the self-employed in Parliament is essential, so we look forward to working with you as Leader of the Opposition.”
Automatic enrolment legal duties for employers: Avoid common error
Employers are still making a number of common errors in their legal duty for automatically enrolling employees into workplace pension schemes, The Pensions Regulator (TPR) said. Errors include using the wrong pension contribution tax relief method; not correctly identifying elements of gross pay as qualifying earnings and as pensionable pay; and the use of postponement. TPR published new online resources to help employers to avoid non-compliance.
Small businesses pitch proposals for net zero policy to Government
FSB represented the UK’s small businesses at the Government’s Energy Security and Net Zero Committee to pitch proposals to investigate overcoming the landlord-tenant split incentive (where landlords lack motivation to invest in energy efficiency improvements because tenants, who often pay the utility bills, reap the costs through savings) and for the Committee to develop a better understanding of SMEs’ needs.
Also, this week, hundreds of small businesses have been taking part in FSB’s net zero survey, which is still open until Wednesday, 13 November, the findings of which will inform FSB’s future proposals.
Small business owners and the self-employed to join the FSB Board of Directors
Small business owners and the self-employed, from all backgrounds, who are attracted to volunteering at a strategic level, are invited to nominate themselves to join the Federation of Small Businesses (FSB) Board of Directors. These opportunities will develop new skills and experience in strategic thinking, diligence, industry insight and communication. Board members play an important role in the considered development of FSB which supports and gives a voice to its tens of thousands of members. More information and how to nominate, by 20 December, at https://www.fsb.org.uk/board-appointments.html
International Trade Week
Led by the Department for Business and Trade (DBT) in partnership with industry, ITW 2024 (11-15 November) will feature five action-packed days of events, workshops and webinars – all free for businesses to attend. The week includes an in-person event in Belfast on 11 November, co-hosted by FSB and DBT.
Protecting small businesses from counterfeit banknotes
Small businesses are encouraged to sign up to the Bank of England’s free Banknote Checking Scheme to protect them from the risks associated with accepting counterfeit banknotes. FSB predicts that cash payments to small businesses will increase during the festive period. Cash is still the number one customer payment method for 25 per cent of small high street businesses, according to FSB.
Incoming changes to business-to-business freight from Great Britain to Northern Ireland
New regulations are coming into effect from 31 March for businesses that move parcels and freight between Great Britain and Northern Ireland. These will only apply to business-to-business freight movements. HMRC has published factsheets for businesses about the impact of the new regulations, including where these would apply, and the importance of businesses applying for UK Internal Market Scheme (UKIMS) authorisation for the movement of goods. HMRC is running a webinar on parcel movements under the Windsor Framework on 21 November.
FSB gives evidence on fairer finance for small firms in Northern Ireland
FSB gave evidence to the Northern Ireland Assembly’s Committee for Finance as part of the inquiry into the banking and financial services. FSB Northern Ireland Policy Chair Alan Lowry and Head of FSB Northern Ireland Roger Pollen discussed the challenges for small firms when securing access to finance and cash access, and highlighted some of the key findings from FSB’s ‘The Future of the High Street Report’ including the severe impact local bank branch closures are having on local communities and small firms. The full evidence session can be viewed on the Northern Ireland Assembly website.
Securing better support for Scottish small businesses
Scotland’s Deputy First Minister Kate Forbes, Finance and Economy Secretary Shona Robison and Minister for Public Finance Ivan McKee met with FSB ahead of the Scottish Government’s Budget. FSB said it would like rates relief for more than 110,000 firms through the maintenance of the Small Business Bonus Scheme. This has proved a lifeline for many small firms in Scotland, as well as delivering sector-specific rates support for retail, hospitality, and leisure businesses following the extension of 40 per cent rates relief for firms in England.
Budget insights for small businesses: On-demand webinar
FSB’s live webinar explaining the key points of the recent UK Autumn Budget for small businesses and the self-employed is now available on-demand. The key points were delivered by FSB’s director of policy, Paul Wilson; head of public affairs, David Hale; and FSB Legal’s tax expert, Andrew Marston.
Welsh Government must support small businesses
FSB said that the Welsh Government should now utilise the consequential funding it will receive from the UK Budget to deliver measures that support SME growth and prosperity. These include retaining the rates relief for hospitality, retail and leisure small businesses at least at 40 per cent, freezing the multiplier used to calculate Business Rates, and matching strategic investment in our critical infrastructure, including improving transport networks and increasing digital connectivity. Head of FSB Wales Ben Cottam spoke to a number of media outlets about the issues, including ITV’s Sharp End.
Black Friday: Advertising regulator’s guidance
The advertising regulator, Committee of Advertising Practice (CAP), has published guidance to help marketers make sure their ads are clear and transparent about what’s on offer, in the run-up to the ‘Black Friday’ consumer event on 29 November. For example, it sets out the rules about any savings claims, e.g., “70% off”, “Save £50”, etc., which CAP says must be genuine, accurate and must not exaggerate the saving that could be made.
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