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Home > FPB seeks ministerial pledge to support smallest firms
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8 July 2008  
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The FPB is urging senior MPs, including the Prime Minister, the Rt Hon Gordon Brown MP, to pledge their support for the UK's smallest firms. In particular, the FPB is lobbying politicians to consider the impact of regulation on the smallest businesses at every stage of the legislative process.

The FPB has written to members of both the Cabinet and Shadow Cabinet, seeking support for its 'Think Smallest First' campaign, calling on them to go one step further than the recently-published Small Business Act for Europe, which encourages European Union (EU) legislators to 'think small first'.

More than 99% of the UK's 4.5 million businesses are 'small' (0 to 49 members of staff); however, the majority employ fewer than 10 employees. On average, the FPB's members employ just 10 people. The FPB believes that, by prioritising the concerns of these companies, the ability of all small businesses to be competitive would be significantly improved.

"It is widely acknowledged that small businesses across the UK are struggling to cope with the increasing burden of red tape and other barriers to growth, such as the UK's disproportionate tax system," said the FPB's Chief Executive, Phil Orford. "The key issue is that businesses at the lower end of the size scale most often lack the resources to overcome these barriers. Considering the smallest, most vulnerable firms has to be the number one priority of all politicians when it comes to legislating on enterprise."

The Small Business Act for Europe echoes many of the FPB's other arguments, including improving access to public contracts for smaller firms, reducing rates of VAT and tackling the late payment of suppliers. However, as the Act is not binding on EU Member States, there is no guarantee that its provisions will become real policies.

Mr Orford added: "More than ever, given the current economic slowdown, it is a important that Parliamentarians in the UK take the lead - and the responsibility - for the nation's smallest firms. Promoting the growth of these businesses will have a positive effect for the economy as a whole."

The FPB's pledge to 'Think Smallest First' is not a contract and is not legally binding. It simply emphasises an acknowledgement and understanding of the concerns of small businesses across the UK.

In addition to Mr Brown, the pledge has been sent to many other high-profile MPs, including senior members of the Department for Business, Enterprise and Regulatory Reform (BERR) such as Secretary of State John Hutton and Baroness Shriti Vadera, the Department's under Secretary of State.



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