Budget 2009: campaigns update

14 April 2009

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The FPB has been campaigning on your behalf for the measures we set out in our 'Budget for Business Survival' since the proposals were presented to the Chancellor Alistair Darling at the beginning of March.

There have been several significant developments since, including the G20 Summit meeting of world leaders and two government announcements, which we hope will be of benefit to our members.

FPB Budget proposals

Our 'Budget for Business Survival' is based upon the four key areas of finance for small businesses, minimising cost burdens for small businesses, protecting employment and improving economic activity. Members voted on issues they wanted to see addressed in the Budget in Referendum 187 and restoring business and consumer confidence came top of the list. Business rates and regulation - particularly employment law - also need to be tackled.

G20 Summit

At the G20 Summit in London on 2 April, the world heads of state could not come to an agreement on new fiscal stimulus measures because some countries wanted to assess

the effects of current measures before making any further commitments. The main discussions at the Monetary Policy Committee's meeting last week surrounded quantitative easing and whether it is having the desired effects of freeing up the credit market in the UK. The Committee decided to stick to its programme of purchases before taking stock of what impact it is having on the economy.

Business rates

On 31 March, the Chancellor made a sudden last minute U-turn on his decision to increase business rates by 5%. The Budget was delayed this year to incorporate any decisions taken at the G20 Summit and this is the reason we are seeing several measures coming through prior to the Budget announcement on 22 April.

We have welcomed the decision to phase in the increase over the next three years in order to help struggling firms, whilst recognising that a deferral is not as much help as a business rate freeze, as set out in our Budget proposals.

For information on how the changes are likely to affect your business, see our Frequently Asked Questions.

Incentives to recruit

On 6 April another government announcement was made, this time affecting businesses who may be recruiting over the coming months. A recruitment subsidy or ‘golden hello' will be given to businesses who recruit staff who have been claiming job-seekers allowance for 6 months or more. £1,000 plus a subsidy of up to £1,500 for in-house training (dependent on business location) is available from now.

For further information on how to make sure you benefit from this scheme, follow this link. In our Budget submission we called for incentives to recruit as well as subsidies for firms having to resort to putting their staff on short-time working as part of an overall strategy for business survival.

How you can help

The 2009 Budget will be announced on 22 April. Your responses to Referendum have helped to shape our campaigns and your comments have now been sent to your Parliamentary representatives which will help to keep up the pressure.

Please get in touch if the cost of doing business or the burden of regulation is restricting your business as we are looking for people who are happy to speak to the press about these issues. Email campaigns@fpb.org. Members have already spoken out about business rates in various national media, showing that if businesses are prepared to come forward, we can make a difference.

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