FSB: Government package is along the right lines

The Federation of Small Businesses (FSB) has welcomed new Government proposals to help small businesses through the economic slowdown, describing them as “going along the right lines.”

The FSB has campaigned for more support to help small businesses improve their cashflow and is pleased to see pledges by ministers to extend Government guarantees to pay invoices within ten days to the wider public sector as well as commitments to employee training and free business health checks.

Commenting on proposals for all councils, public sector bodies and NHS trusts to pay small firms within 10 days, FSB National Chairman John Wright said:

“These initiatives are a welcome breakthrough and set an example to the private sector by paying as early as possible. We have already written to most local authorities urging them to copy the example of Brentwood Borough Council which thanks to FSB lobbying, has committed to paying on 20 days. This new proposal to move everyone to 10 days should help small businesses with their cash flow.”

Responding to the proposals by Skills Secretary John Denham to prioritise training for small businesses in England under the Train to Gain scheme, Mr Wright said:

“Small firms need all the help they can get when it comes to training their staff. It is crucial that training is appropriate and affordable for the smaller employer.

“Small businesses are often impeded by lengthy administration and the costs of providing training so must be made aware of support available. We welcome these measures which should lead to greater uptake of the Government’s ‘train to gain’ scheme.”

Mr Wright concluded,

“The Government is going along the right lines. The proposals should now be coupled with a mechanism to ensure the banks start releasing money to small firms on reasonable terms and other ideas from the FSB and other parties should also be given serious consideration.”

Ends

Notes to Editors

1. The FSB has over 215, 000 members and exists to protect and promote the interests of the self-employed, and all those who run their own business. More information is available at www.fsb.org.uk.

Contacts:

Stephen Alambritis: 020 7592 8112 / 07788 422155
Sophie Kummer: 020 7592 8128/07917628998
Prue Watson 020 7592 8121 / 07825 125695
Marc Shoffman 020 7592 8113 / 07595 067068

For regional FSB contacts please go to www.fsb.org.uk/regions