Keep Trade Local - Rob Wilson Champions Small Businesses

Rob Wilson Champions Small Businesses During Q&A Session With the FSB

21st July 2008

Rob Wilson met with local small business owners and representatives of the Federation of Small Businesses (FSB) on Friday to answer questions and hear their concerns at the FSBs open networking session on Friday at the Holiday Inn on Basingstoke Road, Reading.

The FSB has recently launched a campaign to ‘Keep Trade Local’, due to the rising threat to small businesses. A stark revelation outlined by the FSB’s campaign is that 42 per cent of English towns and villages no longer have a shop of any kind. Indeed, by 2015, the House of Commons Small Shops Group predicts that there will be few independent retailers left in the UK. The FSB states that the aim of its campaign, “Seeks to stem the tide of business closures, reverse the trend and defend the choice and diversity customers deserve.”

Rob commented, “I support the FSB’s campaign to encourage people to shop locally, it helps support local businesspeople and helps people to cut their ‘carbon footprint’ by travelling less to do their shopping. I support free trade whether local or international and strongly believe in competition. I believe that the focus should be on creating a level playing field for small businesses to be given an equal opportunity to compete.”

He added, “British business is the most innovative and creative in the world and small businesses are the ‘engine room’ of the UK economy. This is why I believe that, given a level playing field, British business can beat anyone!”

Other concerns expressed by local businesspeople during the Q&A session included the effect of the ‘credit crunch’ and the late payment of invoices by big business contractors.

Rob heard how large companies have been exploiting small businesses by delaying invoice payments and imposing new terms and settlement fees on owners, with the FSB providing evidence that big organisations are making smaller firms wait over 100 days before getting paid, often changing terms and conditions with little notice.

In one example, the high street chain Alliance Boots wrote to its suppliers in June to inform them that, as of April 2008, bills would be paid up to 75 days from the end of the month of invoice with a 2.5 per cent settlement fee.

There is existing legislation which allows small business owners to charge interest on late payments, but many local businesspeople told the Reading East MP that they are reluctant to use this for fear of losing contracts with big businesses on which they are often reliant.

Rob said, “I know that we are all feeling the squeeze from the ‘credit crunch’ but it is important that all businesses fulfil their obligations. I hope that no business is unduly delaying payments beyond 60 days.”

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