George Osborne warned small businesses that they could be “on the sharp end” of a forthcoming referendum on Britain’s EU membership as he urged them to participate in the vote.
Speaking on Tuesday at a conference in London held by the Federation of Small Businesses (FSB) the chancellor said: “I want to make sure that you, as small businesses, have your voices heard because you are going to be on the sharp end of the economic consequences of the decision that the country takes and the potential uncertainty that may follow.”
Osborne applauded “real progress” made in the talks to renegotiate Britain’s relationship with the EU, as European council president Donald Tusk published draft plans of the new terms. Concessions offered include an “emergency brake” on in-work benefits for migrants, a “red card” veto enabling national parliaments to group together to block legislation and promises to increase competitiveness and cut red tape for businesses. Cameron is pushing for a vote to take place in June.
Faced with an audience of small business owners, the chancellor was forced to defend recent proposals to introduce a new tax returns system. He argued that reforms would make it easier for small firms to file and pay their tax returns online. The plans include the creation of digital tax accounts that would be updated quarterly by small business owners and the self-employed.
Applause for audience comment to @George_Osborne re quarterly #tax reporting being real burden for #SMEs #smallbiz @fsb_policy #FSB2016
— Charlotte Chung (@CharlotteChung_) February 2, 2016
The issue of rural broadband provoked the biggest reaction from the audience. There was laughter when Osborne named it as the technology that could tackle the problem of young talent moving away from rural areas – broadband coverage is an ongoing issue for SMEs in rural areas. Osborne said the implementation of a universal service agreement will help the areas that aren’t covered, but added that improving coverage was a long and expensive process.
@George_Osborne thinks #broadband is the answer to keeping young people in jobs in rural areas. #FSB2016 much laughter from delegates!
— Carolyn Frank (@LibbyButlers) February 2, 2016
The audience also questioned Osborne on how the government planned to make a success of the “northern powerhouse”. He said: “The real challenge is to get cities, counties and towns in the north to think like one community.” Transport links were the key to tackling this problem, he added. He called Transport for the North, chaired by former CBI director general, John Cridland, the TfL of the north. The emphasis was improving links between northern cities and the surrounding areas.
There were also questions around the added pressure to small businesses from the national living wage and pensions auto-enrolment. Osborne said the increase in the national insurance employers’ allowance would help to offset the extra costs faced by small firms.
