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FSB Small Business Survival Package |
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Small businesses are under threat. More than 80% say the cost of operating has increased. Over 50% are being paid later and access to finance has dried up.
The FSB believes that it is now time to tear up the rule book in order to save the millions of businesses that drive our economy and employ the majority of the UK workforce. Freeing up access to finance: The FSB proposes a £1 billion Small Business Survival Fund formed from the Small Firms Loan Guarantee Scheme. The Survival Fund will: - Increase short term funding to £1billion, to be reviewed in six months time; - Allow businesses to apply for intangible outcomes such as working capital and staff training, as well as tangible outcomes from finance; - Be provided by all re-capitalised banks, and the Financial Services Authority (FSA) will stipulate that all banks and Independent Financial Advisors promote the fund; - European Investment Bank money should be bought by the Government and distributed to the Survival Fund. - Any business employing less than 250 people should be able to apply. Tackling late payments: A recent survey revealed that there is £18.6billion in outstanding payments to the SME sector. The average figure owed is £30,000. The FSB welcomes moves by Government, Local Government and the Opposition to ensure payments by public bodies are made within 10 – 20 days. But, the Government can go further. Since the Companies Act of 1985, Public Companies have been obliged to submit their payment terms to Companies House. However, this has not been fully enforced and Companies House lacks the resources to fulfill its role. The FSB calls for an immediate end to late payment, through the following practical steps: - Full enforcement of the 1985 Companies Act; - Double the resources allocated to Companies House and turn it into a fully functioning enforcement agency; - Publicly name, shame and fine companies reneging on the payment terms registered with Companies House. Open up public procurement: Only 16% of public procurement contracts are awarded to SMEs. The Chancellor has pledged to take action on this. This could be resolved with the following simple measures: - Introduce a single pre-qualification questionnaire for all public procurement contracts; - Scrap the £180 fee for receiving access to public procurement contracts via Supply2.gov.uk FSB Small Business Survival Package: These actions could be introduced in a matter of weeks and could deliver instant results. 1. Create a new Small Business Survival Fund with £1 billion. 2. Turn Companies House into an enforcement agency and give it teeth to tackle late payments. 3. Introduce a single pre-qualification questionnaire for public procurement. For more information: http://www.fsb.org.uk/frontpage/assets/FSB%20Small%20Business%20Survival%20Package.pdf FSB Policy Department london.policy @ fsb.org.uk Federation of Small Businesses 2 Catherine Place London SW1E 6HF Tel: 020 7592 8100 The FSB represents over 215,000 small businesses, making it the UK’s leading business organisation
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