New chancellor: smaller businesses call for help on tax and red tape from Brown's successor
The study asked what the next Chancellor should focus on first to help the growth of smaller firms. The FPB's Research Manager, Rebecca Leavers, said there were some interesting results: "Reducing the tax burden was the top priority, with 43% saying action needs to be taken by the new Chancellor." "Twenty-nine per cent of respondents want a reduction in red tape to be put first," she continued. "Whilst 11% want an end to unfair competition to come top of the list. In contrast, just 5% think skills and training should be the priority and only 3% promoting investment." The research, carried out amongst members of the FPB across the UK, also found that, despite his record on stable interest rates and inflation over the last 10 years, 70% thought Gordon Brown hadn't run the economy in a way that was beneficial to them. Ms Leavers said the Prime Minister-to-be has left his successor with plenty of work to do. "The study showed that the majority of respondents thought the economy hadn't been run in a way that had benefited their company. Just 15% thought his management of the economy had helped their firm." Reducing the tax burden When asked which of the five areas should be prioritised, 43% said reducing the tax burden. Of the 350 firms surveyed: 91% wanted a reduction in employers' National Insurance contributions 63% of companies supported a reversal of the hike in the lower band of corporation tax from 19 to 22% Martin Bamford is a partner at MH Bamford, a chemists in Chorley, Lancashire. "My main concern is the amount of insidious taxation, which is quietly done. I am sure that smaller businesses would perform better if we had better support. Perhaps we should all be encamped around the Houses of Parliament to get the next Chancellor's attention?" Reducing the administrative burden Red tape continues to be a major problem for smaller businesses, with 29% of respondents saying that cutting the administrative burden should be the new Chancellor's priority. Of the 350 companies taking part in the research: 85% said the administration of PAYE and National Insurance should be integrated 60% said a mechanism to monitor and evaluate the Government's agenda to cut red tape should be created Diana Heard is a partner at Adelphi Hygiene, a distributor of paper disposables and cleaning materials in Macclesfield, Cheshire. "We need a reduction in red tape. At the moment, there is far too much regulation and too little flexibility, particularly in the area of employment legislation." Eliminating unfair competition Unfair competition was third out of the five areas in the priorities of members, with 11% of companies saying the new Chancellor should tackle the problem first. Of the 350 firms taking part: 76% wanted the Chancellor to tackle late payment 65% supported a simplification of the dispute resolution process 56% of respondents thought a set number of Government contracts should be allocated to smaller businesses Skills and training Of the 350 firms surveyed, just 5% thought that skills and training should be the top priority for the new Chancellor. However, of those 350 companies: 80% supported the introduction of tax credits to encourage professional development 80% thought further education should be more focussed on the needs of business 69% wanted more influence on the formulation of skills initiatives The Ms Leavers said that, although skills and training were not the major concerns for the FPB's members, there was a clear feeling that smaller businesses weren't being engaged in skills and training. "Our members believe more must be done by the Government, not only to understand what smaller businesses want from new employees but also to reduce the cost of training current staff." The FPB has welcomed Gordon Brown's annual Mansion House speech, in which he said he would consider employer-led skills academies. However, the FPB has called for the scheme not to be dominated by big business. Promoting investment Promoting investment was last in the list of priorities among the businesses surveyed, with just 3% saying it should be at the front of economic policy for smaller firms. The survey discovered that, of the 350 smaller businesses surveyed: 78% supported the extension of first-year capital allowances to all plant and machinery 59% wanted to be able to insure and protect intellectual property as well as physical assets at economic premiums Ms Leavers is calling for a determined effort from the next Chancellor to put the needs of the UK's smaller businesses first. "There are more than 4 million smaller companies in the UK, employing over half the private sector workforce. They are an integral part of the economy and whoever succeeds Gordon Brown as Chancellor must put them at the forefront of policy."