FSB makes final plea ahead of Budget 2015

The Federation of Small Businesses (FSB) has made a final call to the Chancellor to build on the high levels of confidence among the small business community in this week’s Budget 2015.

The FSB believes tax simplification, improved broadband services, reform of business rates and continued fiscal discipline are essential to underpin the growing success of UK’s SMEs.

The number of small firms expanding their workforce has risen this quarter compared to Q1 2014 by two per cent, according to the latest FSB Index report.

Subsequently, the FSB wants Chancellor, George Osborne to provide sustained commitment to rebalancing the UK economy, along with improved broadband infrastructure and Government procurement to fast-track the delivery of the Lord Young reforms so that growing businesses see the benefits.

At present, administrative costs in meeting tax obligations for SMEs are unnecessarily high and a streamlining would ease the strain on small business owners.

The FSB supports recommendations from the Office for Tax Simplifications (OTS) which ask for a single tax account for small businesses, with the ability to pay on a month-by-month basis.

Yesterday, it was announced that a review of the existing business rates system would be carried out ahead of Budget 2016 and the FSB believes Budget 2015 is also a good opportunity to publish details of the initial Structural Review announced at the Autumn Statement.

John Allan, national chairman, FSB, said: “The improving outlook for the UK economy is starting to be felt beyond the boardroom with low unemployment, increasing wages and buoyant business confidence amongst our members.

“In many areas, the foundations are in place. What we now need is to allow the reforms that have been made to bed in, and finish the roll out of those recommendations and reforms still needing to be put into action.

“The Chancellor should avoid the temptation for a pre-Election giveaway and focus on maintaining fiscal discipline, and delivering supply side reform that will boost long-term growth.

“This will help to maintain already high business confidence, and support the growth ambitions we are seeing among our members.”

Last updated: 17th March 2015