Federation of Small Businesses - Weekly Brief

Week 2 of 2008
Friday 11 January 2008

In this week’s issue: capital gains tax, London 2012, parking; green business; small business support; REACH; LEZ; credit crunch.

1. Wall of silence from Treasury on capital gains tax
We start this week with some unforgettable song lyrics from the sugary, yet tragically misunderstood and underrated euro-pop ensemble Ace of Base: “Hey darling! Have I told you ‘bout the rest of the world? Hey darling! Why don’t you see you gonna twist and curl? Take a look around.” These immortal lines, taken from the song “Hey Darling”, appear to have finally realised the prophetic potential they showed from the start, mirroring as they do the malaise that Chancellor Alistair Darling finds himself in with the UK’s capital gains tax (CGT) system. After promising to announce revisions before Christmas to his woeful plans to abolish taper relief on CGT, Darling stood up in the House of Commons to answer an urgent question and meekly announced that there would be nothing new until the New Year because he wanted more time to consult with business organisations. Since then, there’s been nothing but silence and the rest of the world is still waiting to hear from the Treasury. David Cameron raised the issue in Prime Minister’s Questions and there was a story in The Times the next day in which the FSB was mentioned.

2. Grabbing a piece of the procurement pie for London 2012
In the news this week were the Olympic Delivery Authority’s (ODA) efforts to get small businesses involved in London 2012 in the face of mounting cynicism about the bureaucracy involved and the perception that all the contracts will go to big companies without small businesses getting a look in. Life is demanding without understanding. To that end the FSB will be working with the ODA to get small businesses involved. Simon Briault, FSB spokesman, was on BBC London News at 6.30pm and 10.30pm on Wednesday in a report on the issue.

3. Parking and pedestrian zones
The FSB was quoted in a story in the Financial Times this week about pedestrian zones and the availability of parking in town centres. The FSB’s view is that independent shops on the high street are being unfairly disadvantaged by local authorities’ revenue-raising parking charges and exorbitant fines, which driving customers to large out of town retail parks where parking is free and plentiful.

4. FSB green message still making headlines
The sign that small businesses are doing their bit for the environment was erected loud and clear this week in articles in the Daily Express and the Financial Times, which both covered the FSB’s New Year survey on corporate social responsibility. John Wright, FSB National Chairman told the latter that clearer, jargon-free communication between government bodies and small businesses would be a good strategy for 2008.

5. FSB says existing businesses should be given more support
In an article in the Financial Times this week that correctly pointed out that the FSB is the UK’s biggest business organisation, Stephen Alambritis, FSB Head of Public Affairs, said that the Government should focus more on helping existing small businesses rather than concentrating on start-up figures.

6. Don’t turn around! Get with the REACH programme!
REACH is a new European Union regulation concerning the Registration, Evaluation and Authorisation of CHemicals. It came into force on 1st June 2007 and replaces a number of European Directives and Regulations with a single system. The Health and Safety Executive is organising a series of regional road shows around the UK to mark the coming into effect of REACH: http://www.hse.gov.uk/reach/diary.htm

7. Low Emission Zone survey
On the February 4 Les Miserables will be accompanied in London by the miserable LEZ (thanks to FSB Policy Advisor Matthew Jaffa for this gem). Transport for London (TfL) are introducing the Low Emission Zone (LEZ), which will target drivers of higher polluting lorries with a vehicle weight of over 12 tonnes. Vehicles first registered as new on or after 1 October 2001 are assumed to meet this standard. The FSB has issued a survey to let TfL know what they think http://www.fsb.org.uk/surveys/lez_jan08.htm. More information on the LEZ can be obtained at http://www.tfl.gov.uk/roadusers/lez/.

8. Credit crunch case studies required
Channel 4 are making a Dispatches documentary on how businesses are dealing with the credit crisis. If your business is experiencing credit or cash-flow difficulty; maybe lines of credit are being reduced, frozen or closed and you are having to find alternate means for raising finance, then Sanjiev Johal at Oxford Film and Televsion is the person to contact on 020 7483 3637 or at sanjiev.johal@oftv.co.uk.