Federation of Small Businesses response to the Queen’s Speech 2008

The Federation of Small Businesses (FSB) welcomed the announcement in today’s Queen’s Speech to crack down on the banks as part of a series of major reforms to the financial sector.

This is a big step forward following evidence from the FSB that banks were defaulting on loans and hiking up costs on overdrafts. Holding the banks to account by strengthening the banking code and putting it on a statutory footing, and fining those banks which break the rules will put small businesses in a much more secure position during the downturn.

The FSB also welcomed measures to create a more level playing field for smaller businesses to take on construction projects; and to make policing more locally accountable to the whole community.

The FSB also supports statutory entitlement to apprenticeships for all qualified young people, but is concerned about enshrining the right for employees to request time to undertake training which could cause administrative problems for small employers.

Plans to extend flexible working for parents of children up to 16 will present difficulties for smaller employers and the FSB had urged a pause on the extension to this legislation given the already difficult economic climate.

The FSB is also disappointed by plans to charge a business levy on top of non-domestic rates that small businesses currently struggle to pay. The Business Rates Supplements Bill is a bill that is not of its time for a struggling economy in 2009.

While the Marine and Coastal Access Bill should encourage tourism into the countryside, the FSB expressed serious concern about the lack of an independent appeals panel for landowners and the lack of any compensation scheme for those landowners.

John Wright, National Chairman of the Federation of Small Businesses, commenting on both the Queen’s Speech and accompanying Government announcements, said:

“The Queen’s Speech is a mixed bag for small businesses this year. Reforms to the financial sector are very welcome, following a very difficult year for small businesses which have seen costs on overdrafts rise and loans being defaulted.

“But measures to extend flexible working for parents will be an extra burden for small businesses at an already difficult time. The FSB is also concerned that small firms will struggle to pay extra business rate charges in what will be a very difficult year.”

Ends

Notes to Editors

1. The FSB is Britain’s leading business organisation with over 215,000 members. It exists to protect and promote the interests of the self-employed, and all those who run their own business. More information is available at http://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.