 We receive feedback from our members on a daily basis about the constant struggle they face in dealing with burdensome legislation, and the associated costs, as well as changes and increases in taxation. To combat these problems, we are asking politicians in Brussels, Westminster, Northern Ireland, Scotland and Wales to 'think smallest first'.
We want the Government to consider the smallest businesses before any other when it comes to new or changing regulations because we believe that, if this pledge is honoured, the resulting regulations and taxes will not create unnecessary burdens on any business. Our aim is to achieve a reduction in taxation and regulations for smaller firms, as well as to raise awareness of the issues relating to late payment, which is still one of the biggest problems facing owner-managers of smaller businesses.
Reducing taxation
What we are campaigning for: a reduction in taxation for smaller firms.
Why: small businesses need to be able to compete with large firms on a level playing field. In April 2009, Corporation Tax for small firms will increase from 19% to 22%, whilst the higher rate, paid by bigger businesses, is being cut from 30% to 28%.
Actions so far: in October 2007, approximately 1,000 businesses and MPs signed our petition calling for a reversal of the Chancellor's decision to introduce a flat rate of 18% Capital Gains Tax (CGT) and abolish taper relief. We put pressure on the Chancellor, which resulted in a minor reversal, announced in January. A 10% 'Entrepreneur's Relief' rate will apply to the first £1 million of capital gains, and any further profit will be taxed at the higher flat 18% rate. This is not enough.
What we want: for the Government to show its commitment to smaller firms by reducing the lower rate of Corporation Tax to 20%, as well as streamlining the various taxes.
Decreasing red tape
What we are campaigning for: the simplification and reduction of red tape.
Why: despite the introduction of the Government's targets to reduce red tape by 25% by 2010, our members do not report any improvements. In fact, new legislation continues to be rolled out at an alarming rate.
Actions so far: since the Government launched its agenda for better regulation in 2007, we have been highlighting areas of unnecessary regulation and actions needed to lessen the impact of red tape.
What we want: maximum simplification of regulations by the European Commission and the UK's Government to minimise the effects of new and existing laws on smaller firms.
Raising awareness of late payment
What we are campaigning for: a significant reduction in the time taken for small firms to receive payments from debtors.
Why: despite our lobbying in the 1990s, which led to the introduction of the Late Payment of Commercial Debts (Interest) Act in 1998, we continue to regularly see examples of small businesses suffering at the hands of larger companies.
Actions so far: we have been naming and shaming companies which abuse their power by making unreasonable demands on suppliers and making unilateral changes to payment terms, and will continue to do so.
What we want: a strengthening of legislation on late payment so that smaller firms can be assured of interest after a period of 30 days.
Please contact the Campaigns and Research department for further information on our campaigns. We can also provide comment for the press, copies of our responses to consultation documents and details of our member research. Call us on 01565 634467 or email us at campaigns@fpb.org.
Email campaigns@fpb.org to add your name to the distribution list of ' Fighting your Corner', a weekly update on our progress.
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Click here to read Phil Orford's speech highlighting the stifling effects red tape has on the FPB's members. |
Click on the links below for more information on the FPB's other 'core' campaigns:
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