This year’s Budget is later than normal. The Chancellor has some complex working out to do…no doubt with the arch architect of micro management – Gordon Brown – looking over his shoulder.
However, Gordon is not the only one lobbying the Chancellor. So is the the Forum of Private Business (FPB).
The FPB represent 25,000 UK-based private businesses. These businesses employ more than 600,000 people. It has submitted this proposal for the Chancellor to consider. There are some good points here which Alistair Darling would do well to keep in mind before issuing his Budget Report on 22 April. Anyway, here are the FSB’s proposals.
Finance for small businesses
The banks must be monitored effectively and further action must be taken to ensure measures introduced are providing a solution to restrictions in small businesses’ access to finance.
Minimising cost burdens for small businesses
Small businesses should have their corporation tax cut to 20%. Small Business Rate Relief should be made automatic and increases in business rates should be scrapped. Increases to fuel duty planned for April 2009 and 2010 should also be scrapped. The government should review current legislation and introduce regulatory budgets. Implementation dates of new regulations should be kept under continuous review.
Protecting employment
Statutory redundancy pay must be frozen and the proposal for an increase in National Insurance contributions should be scrapped. The creation of a job creator’s allowance scheme should be considered to incentivise employers to recruit. A modified Working Tax Credit scheme would allow employees on shorter working hours to have their pay supplemented.
Improving economic activity
Opening up government contracts to small businesses to be fast-tracked. A temporary freeze in residential stamp duty would stimulate the housing market. As would special lending schemes for first-time buyers. An old car trade-in scheme would stimulate the automotive industry.
Cutting corporation tax to 20% would certainly help. As would automatic rate relief. And car scrappage? That has provided a good stimulus in Germany and France. It would also have the benefit of putting cleaner, more fuel efficient cars on the market. But what do you think?
The Forum of Private Business
