Week 30 of 2010        Friday 30 July 2010 

BIS open consultation to give businesses better access to finance
The FSB welcomed the Government’s consultation that highlights its commitment to getting the bank’s lending to small businesses again and its proposal to look at alternative sources of finance such as a National Loan Guarantee scheme and regional stock exchanges. Read BISs report and if you have access, the FSB was quoted in The Sunday Times.  

Boom in small businesses, but with a legal sting in the tail
Concerns surrounding the tax implications for self-employed people that go to work for other companies was the subject of a radio day with Abbey Legal and FSB this week, with over 20 interviews taking place across the UK.  Read the press release and coverage in the Daily Mail and BBC Online.  

Broadband for Business breakfast
Policy Chairman, Mike Cherry chaired a Broadband for Business Breakfast meeting at the Department for Business, Innovation and Skills. Ed Vaizey the Minister for Broadband was there to discuss broadband plans with the FSB. View the photos.  

Government urged to increase road salt levels
An independent panel has put forward FSB recommendations to Government in its winter resilience review. It has said that a simple code of practice be set up which would provide local authorities, households and businesses with clear advice and also that the Government should increase salt levels before the winter months, to better manage the bad weather. Find out more.  

LEPs roundtable event
The FSB took part in a roundtable event with BIS this week to discuss the development of Local Enterprise Partnerships. The meeting was very constructive and highlighted the issues that small businesses face and that the partnerships should have the needs of small and micro businesses at the forefront of their consideration.  

Victory on Furnished Holiday Lettings
The FSB has won a major victory in persuading the Treasury to adopt FSB proposals which will prevent eight in 10 small businesses in the holiday sector from going bust. Under current rules, businesses in the holiday sector must be available to rent for at least 20 weeks of the year and must be rented for 10 weeks. Now the Treasury is proposing to increase this to 15 weeks. Read our consultation response and the Treasury's proposals.  

Immigration evidence says no to cap
David Ramsden, a member of the FSB’s Employment Committee, gave evidence to the House of Commons Select Committee on Home Affairs regarding the inquiry into the immigration cap. On the same subject, John Walker, FSB National Chairman, recently attended the annual dinner of the Federation of Bangladeshi Caterers where the issue of economic migrants was also a very hot topic.  

High Speed Rail
The Secretary of State for Transport, Philip Hammond MP announced this week that exceptional hardship loans will be introduced to provide assistance for those most severely affected by HS2 Ltd's proposed line. Applications can be made from 20 August.  

Case study requests
With the launch of the Government consultation on banks, there is much interest from the national media in talking to businesses who have had difficulty in accessing finance, have seen rates increase substantially on existing loans, or that are about to embark on applying for a loan and wouldn’t mind being followed through the process. Email if you are interested in taking part.  

Work with the MoD?
The FSB is currently writing a report on how SMEs engage with the Ministry of Defence (MoD), what works well and what does not work so well.  This report will be delivered to Peter Luff MP, Minister for Defence Equipment, Support and Technology.  If you have experience of working with the MoD or in the wider defence and security market, the FSB would like to hear from you.   

What do you love about work?
The BBC is making a four part social history series about how our attitudes to work and the workplace have changed since 1945 and is looking for people who started work in the 1980s, 1990s or 2000s to talk about their working experiences in manufacturing, services, retail and offices, as well as those who have set up their own business. Email for more information.  

Interested in being in First Voice?
First Voice magazine is interested to know whether any FSB members exhibited at the recent Farnborough Air Show or attended the Show as trade visitors. Get in touch if you are interested in talking about it. 

 Follow the FSB on Facebook
You can follow the activities of the FSB by joining our official fanpage on Facebook. Become a fan to view regularly updated events, photo galleries, lobbying information and have the opportunity to add your own photos and discuss current small business issues.  

Like what you read?
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FSB News Release
PR 2010 40
Issue date: Friday 23 July 2010  

FSB set to be a key business partner with new local enterprise partnerships  

Small businesses are set to be at the heart of the newly created local enterprise partnerships following a meeting between the Department of Communities and Local Government and the Federation of Small Businesses (FSB) earlier this week. 

The coalition Government has announced that local enterprise partnerships will replace the recently abolished Regional Development Agencies in England. The FSB welcomed the new set up it, but had voiced concerns that small and micro businesses would not be heard locally. So it is welcome news that the FSB – the leading representative of the small business sector – is to be a key business partner with local enterprise partnerships.  

It is well known that small firms are the engine room of the UK economy and the job creators in the country with more than 84 per cent of new jobs created recently by small businesses.  

Mike Cherry, Policy Chairman, Federation of Small Businesses, said: 

“Small businesses must not be ignored and it is crucial that their voice is heard in the newly established Local Enterprise Partnerships, so it is fantastic news that the FSB is going to be the key business partner. While we welcome the creation of these new bodies, we all know that the 4.8 million small firms are the engine room of the economy and the key to creating jobs and so must play a vital role in these new groupings.  

“It is crucial, during this time of economic uncertainty, that the influence of the small business community continues to be felt at local and regional level. We are working closely with the Coalition Government on putting LEPs in place and we want to ensure that the new entities will deliver results so that small firms have the ability to grow and develop, and ultimately boost local economies.” 

The Communities and Local Government Secretary, Eric Pickles, added:

"We want to urgently rebuild and rebalance local economies without strangling businesses with red tape so that new economic opportunities spread across the country.

"That means the solution needs to be local. I was delighted to meet with and hear the views of the FSB as they have a central role to play, working hand in hand with local leaders, to develop and deliver new local enterprise partnerships that will make the economy responsive to the needs of local business and local people."

FSB News Release
PR 2010 39
Issue date: Thursday 22 July 2010  

LBRO needs revamping, not scrapping, says FSB 

The Federation of Small Businesses (FSB) welcomes the review into the performance of the Local Better Regulation Office (LBRO) but is concerned this vital regulatory burden busting body will be scrapped.  

FSB research shows that a third of small businesses state regulation as the biggest obstacle their business faces. The FSB has welcomed the Coalition Government’s proposals to tackle the burden of red tape, LBRO must not be scrapped but overhauled if small firms are to truly see a reduction in regulation.  

The FSB believes there is a role for a body whose purpose is to support and represent small firm’s views on red tape within local authorities and drive through change.  The FSB is urging the Government to revamp the LBRO by giving it the power to cover all areas of local authority regulation and the power to: 

• Enforce a regime of compulsory booked inspections.
• Guarantee all small firms are proactively directed to a single point of contact within their local authority for all regulatory matters.
• Cease routine inspections during times of national emergency areas, where possible.
• Undertake an annual Regulatory Rating Review of local government regulatory services.

 John Walker, National Chairman, Federation of Small Businesses, said: 

“Creating a robust relationship between small firms and regulatory services locally should be a high priority for the Coalition Government if they are to truly deliver on their pledge to cut red tape. At the FSB we know that small businesses prefer to receive information from a local, single source and so this power should be provided locally. 

“LBRO should be a key body that represents the needs and views of small businesses on red tape to local authorities to drive best practice. Yet it has never been given the true powers it needs to fulfil its role. The FSB is urging the Government not to bin the LBRO, but to revamp the body. We look forward to working with the Government in this review.”

FSB News Release
PR 2010 38
Issue date: Tuesday 20 July 2010 

Business confidence still fragile for small businesses, say FSB  

Government must extend National Insurance holiday to all UK businesses as research shows two-thirds of firms in the South East most likely to be under capacity.  

Business confidence has worsened over the second quarter of 2010 suggesting that the recovery is still fragile and more should be done to support private sector growth, according to the FSB ‘Voice of Small Business Index’, published today.  

In a survey of over 1,200 members of the Federation of Small Businesses (FSB), only a net four per cent of respondents believe that business prospects will improve in the third quarter of the year, down from 16 per cent in March.  

The survey also suggests that almost 67 per cent of small firms are operating below capacity, with those in the manufacturing sector faring much better than service sector firms.  

This further highlights how the UK economy is still some way from a full-speed recovery, with 64 per cent of firms in the South East likely to be working below capacity – more than anywhere else in the country.  

With Government proposals to exempt the South East, London and the East of England from the National Insurance holiday for new businesses, announced in the Emergency Budget, the FSB is concerned firms in the region will not start-up and that existing businesses will not have the support they need to grow and take on more staff.  

Key findings from the quarterly report show:

• Small business confidence has faltered each month since March with fewer small firms believing that business prospects will improve, down from 16 per cent to four per cent.
• The majority of small businesses are still operating below capacity, although the proportion of businesses has fallen slightly from 70.5 per cent to 66.6 per cent since the last report. 
• Firms operating below capacity are more prevalent in the service sector than manufacturing and are more likely to be based in the South East.
• Revenue growth remains weak and is not expected to improve in the next quarter.  

John Walker, National Chairman of the Federation of Small Businesses, said:  

“The consensus view from small firms is that the recovery is far from secure and there are significant risks to business growth in the future. With this is mind, as well as the fact that almost 70 per cent of businesses report working under capacity, we encourage the Government to support small businesses to grow and expand.  

“With small firms in the South East most likely to be working below capacity, this shows how wrong the Government is to not include this vital region, as well as the East and London, in its proposals for a National Insurance holiday for start-up businesses. While we support the policy we believe that it should be extended to be UK-wide and be available for existing businesses too.  

“With 600,000 public sector jobs expected to be lost, stimulating private sector job creation, especially in small firms, will be vital to rebalancing the economy.”