Budget 2009: members of the FPB have their say

24 March 2009

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We submitted our proposals to the Chancellor Alistair Darling last week, calling for a 'Budget for Business Survival' based upon the four key areas of finance for small businesses, minimising cost burdens, protecting employment and improving economic activity. You can support our campaign by writing to your MP using the template letter, which you can download from the bottom of the page.

The Pre-Budget Report: what our members said

By voting in Referendum 187, our members have told us that restoring business and consumer confidence are the key issues they want the Government to prioritise in the 2009 Budget.

66% of members felt that the measures announced in the Pre-Budget Report (PBR) last November had been ineffective, with a majority feeling that the measures introduced had no real benefit for their businesses.
The biggest announcement in the PBR – the temporary cut in VAT – has had little impact and is seen as the least beneficial of the measures, although others were seen as quite beneficial.
Increasing National Insurance contributions and fuel duty are seen as particularly damaging ways to pay for these measures. 82% of businesses expect that they will have to pay for these and other government initiatives.
Restoring business and consumer confidence were the key issues that our members felt needed to be addressed by the Budget. Business rates and regulation (particularly employment law) also need to be tackled.

A Budget for Business Survival

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.

FPB Campaigns

We have been campaigning for many of these measures since the Pre-Budget Report announcement in November and have been speaking to MPs, Ministers and civil servants about our Budget for Business Survival proposals. The 2009 Budget will be announced on 22 April and the FPB's campaigns team will be stepping up the pressure on behalf of its members in the month leading up to this key date.

Members can support our campaign by downloading our template letter and sending it to their MP. For contact details of your representative, follow this link.

We always welcome feedback from members. If there is an issue affecting your business that you would like to raise with us, please email campaigns@fpb.org or call 01565 634 467.

Click here to read our full report on the results from Referendum 187.

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Budget 2009: members of the FPB have their say

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