Business rates were top of the agenda at the Federation of Small Businesses (FSB) conference in Birmingham on Friday, closely followed by late payments and workplace pensions. On the second day of the annual event, George Osborne, Nick Clegg and Ed Miliband explained what each of their parties could offer small firms, if elected.
George Osborne
Osborne discussed building a “northern powerhouse”, devolving business rates and the Conservative’s approach to late payments:
- He praised SMEs for helping to reduce unemployment by creating new jobs
- He said the experiment for Greater Manchester to keep 100% of the additional growth in local business rates could be rolled out across UK
- He said the north is growing faster than the south helped by extra investment in the drive for a “northern powerhouse”
- He said the Small Business, Enterprise and Employment Bill, which is completing its passage through parliament, will name and shame those guilty of late payments
Osborne taking questions. First Q: the south west has been neglected with transport links, what are you doing to help the area?
— GuardianSmallBiz (@GdnSmallBiz) March 20, 2015
Osborne agrees the area has been neglected, says actions are being taken to improve both the road and rail links to the south-west #FSBConf
— GuardianSmallBiz (@GdnSmallBiz) March 20, 2015
#FSBConf #ibacksmallbusiness #Birmingham George Osborne says he wants to implement a radical review of business rates by 2017
— Barbara Rainford (@strawfields) March 20, 2015
Osborne says reform of business rates must reflect the digital nature of the economy #digitalskills #FSBCONF pic.twitter.com/GmcTFtGPF1
— Go ON UK (@Go_ON_UK) March 20, 2015
Nick Clegg
The deputy prime minister answered questions from the audience on the following points:
- An owner of a PR business in London expressed concern at the 300% rise in business rates she’s dealt with in the last three year. Clegg agreed on the extent of problem: “One of the major anachronisms in our tax system is the business rates system, it’s taxing you in way that is irrational - the business rates review needs to be cross-party.”
- Clegg added that SMEs will be made the priority for any business tax cuts
- He said the Liberal Democrats want a third of government contracts to go to SMEs and aim to double the number of employers with apprentices in the next parliament
- Another audience member pointed out that R&D tax credits only apply to incorporated companies at the moment, they should be extended to all
- Audience members voiced concerns about workplace pensions, saying they are causing small firms problems and preventing them from taking on staff. “It’s very worrying that workplace pensions are actively discouraging you from taking people on,” Clegg said. “I’ll act as a foghorn on your behalf for taking people on.”
- On the “northern powerhouse”, Clegg said he was aware of the rivalries between northern cities, but that what was good for Manchester, or Leeds would be good for all.
Here’s Nick Clegg’s speech in full
.@Nick_Clegg says creating links between biz & local colleges can help SMEs share the administrative burden for apprenticeships. #FSBConf
— Aldermore Bank (@AldermoreBank) March 20, 2015
Ed Miliband
In his speech and Q&A the Labour leader covered finance, zero-hours contracts and the HMRC:
- “When it comes to cutting taxes for businesses, we will put small businesses first in line.”
- “If we win the election we will cut business rates, then freeze them again next year.”
- On the energy market: “We would give the regulator the power to cut bills so that wholesale price falls are passed onto you [small businesses].”
- He said 44% of SMEs had a problem with late payments last year, adding that they hamper small businesses’ ability to invest and grow
- Miliband: “We will bring in requirements for large firms to report on their actions on late payments.”
- Miliband: “We will legislate to end ‘supply chain bullying’ if it is necessary to do so.”
- Labour promises to establish a small business administration, similar to the one in the US.
- If Labour was elected it would launch a review into the customs and practices of HMRC: “We are determined to end the situation where you pay more because large firms aren’t paying their fair share.”
- Miliband said Labour will create a British investment bank to provide lending to SMEs across the country.
- The owner of a murder scene recreation company said Labour’s plans against zero-hours contracts would damage his business. Miliband replied, saying Labour’s take on zero-hours contracts targets big businesses taking staff on in effectively full-time capacity, with no promise of how many hours will they be needed each week.
Round of applause for @Ed_Miliband when he pledges to end auto-rollover of small businesses' energy contracts. #FSBConf
— FSB Scotland (@FSB_Scotland) March 20, 2015
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