Clearview National August 2016 - Issue 177 | Page 10

BREXITUPDATE

Setting out small business agenda
for EU negotiations in wake of
drop in business confidence
»»THE FEDERATION OF
Small Businesses (FSB) is urging
the Government to ensure
economic stability at this time
of uncertainty. Mike Cherry,
National Chairman at the
Federation of Small Businesses
(FSB), said: “FSB will be the
voice of smaller businesses in the
EU negotiations. As soon as the
EU Referendum results were clear,
FSB called on the Government
and the Bank of England to
provide economic stability, for
small firms to get the confidence
to continue to drive economic
growth and create jobs.”
“Smaller firms need simple
access to the single market, the
ability to hire the right people,
continued EU funding for key
schemes and clarity on the future
regulatory framework. This
is crucial to ensure economic
growth and job creation.”
One third of FSB members
export or import, with the vast
majority doing so with other
countries within the single
market. Access to the single
market means access to 500
million potential consumers,
more than 26 million businesses
and is worth more than £9
trillion. The UK decision to leave
the EU will impact smaller firms
which directly import, export, but
are also part of a supply chain.
FSB is calling on the Government
for assurances that smaller firms
can maintain access to the single
market, and for steps to protect
inward investment.
Smaller firms employ 15.6
million people, which make up
60 per cent of all private sector
employment in the UK. Access
to the right skills is a crucial

requirement of smaller firms to
ensure they can meet consumer
demands and grow as a business.
Over 30 per cent of FSB members
are worried they do not have
access to the right skills.
Smaller firms need to be able
to hire the right person for the
job, and sometimes this means
recruiting from overseas. While
we must focus hard to upskill our
UK workforce, including both
academic and vocational skills,
access to skilled labour from
the EU must remain in place in
the medium-term. In addition,
many UK small firms, the
self-employed, consultants and
freelancers want the right to work
in the EU as they do now.
Directly and indirectly, many
small businesses have benefitted
from EU funds, some channelled

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toward infrastructure and others
toward local initiatives. FSB
members want reassurance that
all schemes remain fully-funded
in the short-term and a full
assessment of the future of EUfunded schemes takes place.
The Government’s deregulation drive has seen some
success, but we now call for a
stronger role for the Regulatory
Policy Committee in terms of
tax regulations and rules coming
from the EU. Government
should now be setting out their
approach to boost this drive to
remove red tape. UK/EU law
has been developed over the last
40 years and now needs to be
disentangled, and Government
must provide clarity over
what new regulation may be
required.

Mike Cherry continued: “FSB
will continue to be a constructive
partner in these negotiations and
push for swift clarity on these
crucial questions. We will seek to
ensure that the confidence of the
UK’s 5.4 million small businesses,
which is already at its lowest level
since 2013, does not fall any
further.”
The latest FSB Small Business
Index (SBI), gathered before the
EU referendum, found small
business confidence at a four-year
low, following the largest annual
drop since it started in 2010, with
smaller firms planning to cut jobs
for a second consecutive quarter.
FSB members reported falling
profits with increases to the cost of
labour and the overall tax burden
listed as major contributors to a
rise in the cost of doing business.
The index also saw a sharp
fall in investment intentions
with just 12.2% of small firms
planning new capital investment
in the next 12 months - less
than half of the 31.9% planning
the same a year ago. This came
despite improvements to both the
availability and affordability of
credit.
Mike Cherry said: “We need
Ministers to take stock and roll
back any plans that will make
doing business more difficult or
costly. This should also include
honouring commitments to
expand small business rate relief.
The Low Pay Commission
should be particularly vigilant
when recommending next year’s
National Living Wage rate,
taking extra care to ensure small
businesses can sustainably support
higher wages at this challenging
time.”