The Federation of Small Businesses (FSB) has called on the Chancellor to use next week’s Autumn Statement to instil confidence amongst small businesses and remove barriers that are inhibiting job creation. A variety of measures, which the SBF blog will summarise below, have been proposed that the FSB feel will help to improve the economic situation in the UK, despite major concerns about the eurozone.
Act quickly against youth unemployment
After last week’s much barracked youth unemployment figures were released, the FSB believes it is a key priority to encourage small businesses to get young people into work before they become detached from the labour market.
To prevent such large youth unemployment becoming ‘entrenched’, the not-for-profit organisation feels now is the time to organise a National Insurance Contributions holiday for small businesses.
Simplify tax regimes
As many small business and SME owners will appreciate, complying to tax rules and regulations is a big burden which uses up considerable resources.
Therefore the FSB has suggested the government listen closely to the Office of Tax Simplification’s recommendations on how to simplify the tax regime for small businesses and make the tax system quicker and easier to understand.
Increase competition in banking market
The FSB wants the government to ensure credit easing policies are in line with the requirements of small businesses and start-ups, not just bigger businesses’ interests.
To do this, it feels that there should be increased competition in the banking sector, together with the promotion of alternative and innovative forms of funding (such as invoice finance) for small businesses looking to expand and grow. This would help to break the ‘stranglehold of the big banks’ and free up finance to the lifeblood of the economy, small businesses and SMEs.
Alternative finance solutions with Skipton Business Finance
If your small business or SME could benefit from an external source of funding, but hasn’t had any luck dealing with bank credit, could an alternative solution, such as invoice finance, be what you need?
Invoice finance, which includes invoice factoring and invoice discounting facilities, works to release cash tied up in unpaid invoices. If you are having problems waiting 30, 60 or even 90 days to be paid by your debtors, invoice finance could be just what you need.
There were 17,466 businesses using invoice discounting facilities at the end of 2015.