What should the new Government do for SMEs?
It’s election day! The United Kingdom is about to get a new government. Whether it’s Conservative, Labour or another coalition, what should it do for SMEs? We’ve had a look at some of the most-discussed issues. What would you add to this list?
Give them power in Downing Street
Our next government should recognise the huge importance of SMEs to the economy and treat them with the respect they deserve.
Of the 4.5million businesses in the UK, it’s estimated that 99% are SMEs. Despite this, a poll run by the Forum of Private Business found 81% of the public felt small businesses weren’t getting their voices heard enough in parliament.
Our next Prime Minister needs to put SMEs at the heart of their business policy and make sure that the bodies that represent us have a direct line to Downing Street.
Crack down on late payments
Late payment is punishing our small businesses and putting them at risk of going under.
In 2014 the FT reported that UK SMEs were owed almost £40 billion because of late payment problems; the Confederation of British Industry says that the average UK firm is running £30,000 behind.
We’d like the new government to tackle this issue. A good starting point, as suggested by the Federation of Small Businesses, would be to make 60 days the statutory limit for late payment, with 30 days being best practise.
Revitalise our high streets
Footfall on high streets across the UK keeps falling; between January and March of this year there was a 1.25% decline.
Apart from competition from out-of-town destinations such as shopping centres, businesses on the high street are facing a combination of high rates and punitive parking restrictions.
The next government should make it a priority to revitalise high streets across the UK. Local authorities must be able to provide discretionary business rate relief, and they should stop using excessive parking charges, which deter shoppers.
Reform and regulate the tax system
The Association of Accounting Technicians reports that more than 50% of UK SMEs feel the complexity of the tax system is more costly to them, than big business.
To add to this, discussions of legal tax avoidance always revolve around major corporations, since they have the money to hire the best tax experts. HMRC said £4bn was lost through avoidance schemes just between 2011-2013.
Our next government must understand that standing side-by-side with SMEs means reforming the tax system. It needs to be easier to understand, easier to use and it has to apply to all firms, equally. The hard working owners and staff of British SMEs should not have to subsidise multinational companies.
What would you like the new government to do to help the plight of SMEs? Let us know in the comments.
