Members of the UK200Group comment of FSB survey results
Members of the UK200Group of independent accountancy and law firms have today commented on news that the Federation of Small Businesses (FSB) conducted a post 2015 UK general election survey of small business owners and found that of the 2,327 firms that commented, more than a third (35%) wanted a sustained economic recovery to be the top priority for the new Conservative government in the next parliament. Other important priorities for business owners were lowering the cost of doing business and ensuring growth in every nation and region of the UK. When asked what issues they would like the government to focus on over the next five years, over half (53%) said they wanted Ministers to reduce the regulatory burden on business, with simplification of the tax system a close second on 51%. Business owners were also clear that reforming business rates and improving the employability of young people were important benchmarks for the next five years.
Duncan Montgomery, tax partner, UK200Group member firm Whittingham Riddell LLP, said: “The issue ranked at number seven, tackling late payments, is the one issue that can, and does, derail so many businesses. Tackling this will be a boon to many if it could be achieved. The existing rules on charging interest for example, are optional not mandatory or enforceable, and lack the teeth to encourage payment, particularly when a customer relationship is not short-term. Too many businesses become insolvent through a cash crisis. That could have been avoided if they had collected their debts on time. A strong credit controller chasing debt is a must for businesses. Too often it is ignored, particularly by sales staff, until it is too late.
Jonathan Russell, partner, UK200Group member firm ReesRussell, said: “The FSB survey is spot on from the comments I see from small business and the worrying thing is that the vast majority of small businesses are still to go through the set-up of auto-enrolment for pensions which is yet another cost and administrative burden foisted upon them by government. The penalty for employing people as a business steadily rises and most of it is home-grown, not EU driven. Business rates reform may be something many talk about but in reality for most small businesses it is a very small percentage of their overall costs and any change would not make a significant difference.”
