Originally written by Timothy Adler on Small Business
Michael Gove has responded positively to the concept of a Brexit transition voucher to help small businesses get through Brexit.
The Cabinet Office minister, who is in charge of Brexit preparations, has said the concept of a Brexit transition voucher for small businesses which need to buy new equipment or pay for services would be looked at and required “intense conversations”.
Federation of Small Businesses, which posed the question about a Brexit transition voucher to Mr Gove, has long supported such a scheme. Last month FSB chairman Mike Cherry described transition vouchers as “a sensible way forward” – set sums which could be spent on expertise, tech and training.
>See also: Just when you thought it couldn’t get worse, business rates return in April
Last month FSB national chairman Mike Cherry said: “Given that small firms have been flat out managing coronavirus-linked disruption for the past six months, the Government needs to step in with substantial financial support to assist with transition preparations.”
The Cabinet Office minister was speaking yesterday during a conference call with 250 company leaders and business groups.
Prime Minister Boris Johnson was also on the call and reportedly made positive noises about help for small
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Business rates reform key, says Labour business chairman Rachel Reeves
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Rachel Reeves, chairman of the Parliamentary business select committee, sees business rates reform as the tool to heal hurting small businesses.
Speaking at an event this afternoon organised by the Federation of Small Businesses, Reeves said the Government’s priority has been cutting corporation tax for corporates, while ignoring small businesses.
Reeves said: “Small businesses are the backbone of the economy. They’re where future profits, employment come from. Labour in government would do all it can to support small businesses so you can grow to create prosperity throughout the country.”
The Labour MP said that the burden of business rates was felt very keenly by small business.
“I would like to see the priority of business taxation to help smaller businesses and start-up businesses, rather than cutting corporation tax, which benefits larger businesses,” Reeves said.
“We hear time and time again of the challenges of business rates. Business rates reform need to be looked at in the round, rather than just benefiting large businesses,” the Labour MP said.
FSB policy head Martin McTeague added that a first step should be stop linking business rates to inflation, which would easily be within Government’s remit.
McTeague said: “Business rates are a broken system,
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Large businesses could be fined for failing to pay SMEs on time
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Large businesses could be fined for failing to pay small and medium-sized business suppliers on time, as part of a Government crackdown on SME late payments.
The move will see entire company boards held responsible for supply chain payment practices, and not just finance directors, as previously mooted.
The Government has also announced a new £1m fund to to encourage businesses to use technology to simplify invoicing, payment and credit management.
And the Small Business Commissioner could have beefed-up powers to tackle SME late payments and binding payment plans.
SME late payments result in the closure of more than 50,000 small businesses each year, according to the Federation of Small Businesses, costing the economy £2.5 billion. On average, small businesses are owed £80,000 apiece. In 2018, Britain’s small businesses collectively spent £6.7bn just to collect money they were already owed – a huge drain on investment.
From now on, company boards will be held accountable for payment practices to small businesses within their companies in a drive to increase transparency and accountability on late payments. Measures will force audit committees to report payment practices in company annual reports.
The Small Business Commissioner will also assume responsibility for the voluntary