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Government urged to think about SMEs

Business leaders called on the government to take emergency measures to help small businesses last week.

The Federation of Small Businesses (FSB) launched a blueprint for stabilising the UK economy and saving threatened jobs with a proposed new £1billion fund for small businesses.

The key measure the FSB wants to see is the creation of a new Small Business Survival Fund open to all small businesses. The FSB wants the Small Firms Loan Guarantee scheme scrapped and reformed as a new Survival Fund, bolstered with money made available through the European Investment Bank (EIB).

The FSB also wants to see a simplified and well-advertised process for public procurement and for big businesses which fail to pay their bills on time to be named, shamed and fined.

The group also wants the subscriber fee to the Government’s Supply2.gov.uk website to be scrapped, so small businesses can have access to information about public procurement contracts across the country.

Colin Stratton, FSB Regional Chairman for the North East of England said: “A lot has been made of the rescue package for big banks, but small businesses are at the heart of our economy, employing just under 60% of the private sector workforce. A rescue package for small businesses is crucial to shortening the economic downturn and saving jobs. Small businesses need innovative and decisive action now.

“Despite not enough government assistance been offered, SMEs are fighting hard in the North East and are thriving against all the odds. This shows what a productive region we are part of and exactly how much SMEs bring to the area. The proposed Small Business Survival Fund will, if the Government takes it up, be another boost to small businesses and can only serve to make our sound North East economy, even stronger still.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .