Chancellor has listened to business, says FSB

RESPONDING to the Autumn Statement delivered today by the Chancellor, David Knowles Leak, Thames Valley FSB Regional Chairman said: “The Chancellor has listened to the needs of business, despite tight public finances. The focus must be on reducing the deficit not just for this Government but whoever holds the keys to Number 11 next year.

David Knowles Leak

“The FSB is delighted to see the double small business rate relief remain for another year and a full review of the outdated business rates system, something we’ve long argued for.

“The £400 million released to back the British Business Bank and an extension to the Funding for Lending scheme will provide much needed cash for small businesses.

“For our long-term growth, the Chancellor is right to support young people via apprenticeships and to spend on infrastructure. Our roads and rail urgently need updating. The £15 billion he has allocated for roads will upgrade our network and boost growth in our regions.”

Commenting on specific measures, David Knowles Leak continued:

On the proposed business rates review and reliefs: “This urgent review of the business rate system is critical to supporting small businesses. The current system is out of date and needs to be put out to grass. It’s complicated, opaque, regressive and unresponsive to changes in economic conditions. Many of our members tell us paying business rates is their third biggest cost after rent and wages, yet the tax is poorly targeted and not based on ability to pay.”

“All businesses will be grateful for this review, but let’s be absolutely clear on what businesses want – fundamental reform of the business rate system. The announced package of renewed reliefs, will also be essential, as they will help bridge the gap until fundamental reform can deliver the change everyone agrees must now come.”

Supporting better small business finance:

“Despite signs of recovery, there has been only limited progress in increasing lending to small firms. The extension to the Funding for Lending Scheme, set alongside new money to further back the British Business Bank, are prudent steps to makes sure these gains are sustained and extended.

“Only half of small business applications for finance are successful. Better targeting of small business loans is essential to focus banks on meeting the needs of firms looking to hire staff, export, and grow their businesses.”

Infrastructure:

“New and renewed road and rail infrastructure will be the backbone to any future growth, particularly outside of London. Small businesses are disproportionately reliant on our road network, above all rural businesses and those in the North of England. The promise of £15 billion of investment will be very welcome and businesses will strongly support putting this money to good use as soon as possible. Also very welcome is the sustained freeze in fuel duty.”

Research and development:

“Small businesses are well known to be the engine of innovation. Today’s measures to support the science base and increase to the small business research and development (R&D) tax credit are welcome and will help our innovative firms to remain at the cutting edge.

“However, business take-up of R&D tax credits remains low, with just one in 50 FSB members claiming them. Many members still claim that the process is too complicated. We therefore welcome that the increase in this credit will be accompanied with measure to make it easier businesses to claim.”

Apprenticeships:

“Small businesses have been responsible for the majority of the jobs created in the last few years. But many of our members tell us they struggle to find young people with the skills they need. The National Insurance relief for businesses taking on apprentices under the age of 25 will encourage businesses to take on even more young people and tackle the UK’s skills gap head on.

“However, this will need to be supported by a reformed apprenticeship framework and funding mechanism that does more to encourage small businesses to invest in developing their workforce through high quality apprenticeships. We look forward to working with the Government to ensure this happens.“

SOURCE: Press release