Small Business chief responds to Chancellor’s budget

THE Federation of Small Businesses (FSB), has generally welcomed the Budget, saying that it shows progress on economic recovery and maintains the momentum for growth aspirations. However it does have some concerns, including the lack of the inclusion of  small businesses in the Flooding Re Scheme and the new-style £1 coin.

Chair Thames Valley Federation of Small Business, David Knowles Leak

David Knowles Leak, FSB Thames Valley Regional Chairman,  said: ““The Government has been very supportive towards businesses and households hit by the severe flooding earlier this year. But, small businesses will remain at a disadvantage at not being included in the Flood Re scheme. Businesses in flood-hit areas were hit with an average cost of £1,531. More than a third (37%) of FSB members in these areas expect it to be more difficult to renew their insurance and more than half (59%) expect their insurance to become more expensive as a result of being left out of the Flood Re support scheme.”

On Energy, David said: “We are pleased to see how seriously the Chancellor is taking the cost of energy. Without addressing the issue, especially in manufacturing, jobs could be lost to abroad. 

“Our first quarterly Small Business Index for 2014 shows utilities remain the main cause for rising business costs for more than half of small firms and as a result the FSB has continuously called for action on energy taxes and increased transparency in energy prices. Small firms want these overheads reduced, and for reforms to energy markets to make the market fairer for these customers.”

Regarding the Chancellor’s announcements on house building, he said: “Extending Help to Buy on new build properties and committing to a new development in Ebbsfleet will maintain increasing confidence in the construction sector, which has risen significantly in the past year. To continue to build on this increasing optimism the Government needs to ensure that small firms can access contracts and work. The financial support announced for small house builders will therefore be welcomed.”

David had some reservations about the announcement of the new-style £1 coin. “Small firms who deal with low priced items are more likely to be effected by fake currency but we do have concerns about the extra costs of introducing a new pound coin. For example small firms may have to pay out to replace machinery. But, there is no doubt that counterfeit coins and notes can seriously damage the business. Not only are they worthless but a small business could be prosecuted if they pass them on,” he said.

He concluded: “This was always going to be a ‘steady-as-you-go’ Budget for business, designed to get the UK’s financial affairs in order. The Chancellor delivered a Budget to maintain positive momentum in the economy, while incorporating fiscal prudence. Today’s Budget offered a clear signal for businesses to grow through the increased investment allowance, and with a focus on manufacturing. The £7 billion package to cut manufacturing energy bills will help create jobs and strengthen this key sector.”

You can read the full statement on FSB Thame Valley’s website here LINK including reaction to the help with childcare and for exporters announced today.