The Federation of Small Businesses (FSB) is calling on the Chancellor Philip Hammond to make good on his claim that
“the Conservative Party is — and always will be — the party of business” in its Autumn Budget (29 October).
FSB national chairman Mike Cherry said: “For small-business owners, this Budget is the Chancellor’s ‘make or break’ moment. Warm words from the Government are welcome, but they need to translate into action.
“With our small retailers trying to keep their heads above water — and the self-employed community left demoralised by the failure to end Class II NICs — this is the Chancellor’s opportunity to show he really does back business.
“Brexit is naturally ‘front of mind’ for many in Westminster, but it is important to remember that small firms cite the domestic economy as the main barrier to growth. Securing the right Brexit deal is vital; so too is providing support closer to home.”
The FSB’s Budget submission highlights the increased cost of doing business for small firms, especially where employment, fuel and utilities are concerned.
With small firms already reporting that the introduction of Making Tax Digital (MTD) will increase compliance costs, the FSB is calling on the Chancellor to steer clear of any fresh ‘tax grabs’ later this month.
In particular, FSB highlights the need to maintain the current Dividend Allowance and VAT registration thresholds, while calling for an end to further increases to the Insurance Premium Tax, which has risen from 6% to 12% over the past three years.
Mr Cherry added: “The Prime Minister’s announcement of a continued fuel-duty freeze will be hugely welcomed by the millions of small businesses that rely on cars, vans and trucks to get work done.
“So too will the Business Secretary’s moves to end a UK late-payment crisis that destroys 50,000 small firms a year.
“We want to see the Chancellor continuing in that vein — reducing the cost burdens for small businesses and recommitting to ending the scourge of poor payment practice.”