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SME representative needed in Whitehall, say FSB

The Government should consider creating a body to defend the interests of small businesses at the heart of Whitehall, according to the Federation of Small Businesses (FSB).

The FSB made this announcement in its Budget submission to the Chancellor, suggesting that the Government consider implementing measures in ensure that the voice of small enterprise isn’t lost amongst competing priorities.

Successive Governments have failed to understand the needs of small businesses, appeasing them with temporary ‘eye-catching’ measures with no real tangible effects. The FSB is now proposing that the Government consider creating an agency modelled on the US Small Business Administration, designed to give SMEs a real voice.

The Small Business Administration helps to facilitate small business finance, including credit easing and export finance, improve procurement opportunities and offers rapid assistance to businesses hit by circumstances out of their own control. It also has a seat in the Cabinet.

If a similar body was introduced in the UK, it would be able to challenge other departments to reconsider policies which could potentially damage small business interests, as well as co-ordinating communication between Government and SMEs.

Commenting on the proposal, Ted Salmon, North East Regional Chairman, Federation of Small Businesses said: “The Chancellor has made clear that there will be no big tax give aways in this year’s Budget and that it is up to the private sector to drive economic recovery by creating jobs and growth.

“The FSB in the North East argues that in order to do that, the Government must think small first by giving the North East’s 121,000 small businesses a more prominent seat within Government.”

The FSB is also encouraging the Government to consider select areas for intervention to make a lasting impact on business confidence, look at measures to help small businesses in tax simplification and reworking how long term policies are regulated and composed.

He continued: “Through implementing a Small Business Administration, it would allow the Government to quickly implement policies aimed at helping small businesses in the North East – such as credit easing – which firms have been waiting for since the Autumn Statement.

“It would give the Government a channel through which it can advertise procurement opportunities, give expert help and advice on exporting as well improve communications with small firms in the region. All of this would in turn help to achieve growth in the region.”

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