FSB Scotland A Year in Review
2022: Giving Small Businesses a Big Voice
FSB Year in Numbers
103,563
Advice line telephone calls
2,483 181,862
Live Chats answered
Action on Energy Crisis
FSB Legal Hub downloads
19,000 6,622 5,517
FSB Sustainability Hub visits
FSB Legal Hub online call bookings
FSB Skills Hub visits (since launch 26.09.22)
Cost of Doing Business Crisis: Battling for breathing space
As the economic crisis gathered pace throughout 2022, the year has been punctuated with government financial statements, budgets and other announcements. Here in Scotland, ahead of unveiling its official draft Budget at the end of the year, the Scottish Government set out an Emergency Budget Review (EBR) in October. In advance of the EBR, FSB Scotland engaged with Scottish Government to promote a range of policy moves that could stimulate growth and protect smaller firms. These included retaining the Small Business Bonus Scheme and reviewing the regulatory burden currently being placed on small businesses. Consequently, the Scottish Government committed to both of these moves, alongside other FSB asks, such as taking further action on late payments, driving forward changes to the planning system and exploring how the Scottish National Investment Bank (SNIB) can do more to support small businesses.
With members being hit with skyrocketing bills, FSB, in Scotland and across the UK, has led the calls for action on small business energy costs. We repeatedly made the case for smaller non-domestic customers to receive the same level of price protection as afforded to private consumers – not least as the only business representatives at the energy summits hosted by the First Minister in August and October. As a result of our sustained campaigning, the UK Government announced the Energy Bill Relief Scheme, which introduced a cap on energy prices until at least April 2023. The challenge now is to ensure firms who remain in need continue to receive support once this first phase of the scheme ends.
Cutting the cost of employment: NICs Hike Reversed
FSB also successfully campaigned to reverse the National Insurance Contribution (NIC) rises which came into force in April 2022 and, at a stroke, made it more expensive to employ staff. Having pointed out that the jobs tax hike could mean 50,000 fewer jobs in the UK economy and add billions to the cost of doing business, the UK Government relented and reversed the rise in September.
At the same time, the Employment Allowance – the FSB-designed measure to remove the first £5,000 from every small employer’s NICs bill – was retained at the same level. This means that small businesses can employ four staff on the living wage without paying a penny in employer NICs.
Scottish Local Elections 2022 – The Power of Local
Ahead of the local elections on 5 May, FSB Scotland launched our Power of Local campaign, calling on Scotland’s councils to put small businesses at the heart of their plans for recovery. A nationwide manifesto was created, alongside several individual ones for particular local authorities. Our key asks centred on the need for councils to increase spend with local micro businesses and to review the amount of regulation to which small businesses are subject. These are both issues on which, of course, we continue to push all our governments –not least through our work on the forthcoming Community Wealth Building Bill and cost of doing business crisis.
National Strategy for Economic Transformation (NSET) –Getting the small business voice heard
In March, the Scottish Government published its long-term strategy for economic development and growth. We were pleased to see that a key aspect of the strategy is prioritising entrepreneurship as a route to enable the country’s economic recovery. The government has to committed to “making Scotland the best place to start and grow a business by 2032”. It is now our job to ensure government takes the correct, concrete steps to make this happen.
As we began the slow exit from Covid restrictions at the start of the year, we also started to move from delivering our support and events exclusively online to doing more in person. Whether virtual or face-to-face, FSB Scotland continues to run and take part in a number of events, member support sessions and consistent briefings with elected members and key stakeholders. As a result, we have strengthened our relationships with stakeholders and members across the country, representing all small businesses and the self-employed in all spheres of government. At the same time, we have also grown our volunteer member pool, who play a vital role in supporting our lobbying and advocacy work.
FSB Awards
Once again Scotland’s businesses community punched above their weight at the FSB Celebrating Small Business Awards, with Peterhead based Amity Fish Company netting a hattrick of wins for Scotland at the UK final. With just over 6% of the UK’s business population, three winners in four years is something we should all celebrate.
1,650 882,500
"I also want to say thank you to the Federation of Small Businesses itself. The FSB here in Scotland is a valued partner in all of our work to support the economy. During the pandemic they did an outstanding job of representing small business’s interests- and they did that in a way which was often and rightly challenging for government, because at times we needed to hear really hard messages. But they did that in a way that was very constructive and I want to thank them for that."
First Minister Nicola Sturgeon May 2022
2,262
Amazingly professional and helpful organisation
"I have only been a member of FSB for a short time but have been so impressed with the range and quality of the services - most of which I had no idea they provided before I joined. Their range of information provision, especially through webinars, is outstanding and the webinars are professionally organised and facilitated. The wellbeing services too are excellent and easily accessible and I would highly recommend FSB and the quality of the wonderful services they provide."
Client not paying invoice.
"We had an issue with a client not paying their invoice. It was a large amount which affected our cashflow greatly. After looking at the services they offer I contacted the advice line who gave me some great advice and subsequently helped me to resolve the dispute and get the invoice paid. It gave me peace of mind that there is professional legal advice I can call on when needed as a small business."
There is no better praise I can give...
"There is no better praise I can give than to say NO small business should operate without FSB membership! It’s an outstanding support for all business needs. I have relied on their services, their expertise, their lobbying and our local FSB rep to support me as a single owner of a successful business and could NOT have achieved what I have without the FSB. During Covid they have kept me from sinking, kept me sane and always provided support across all kinds of issues when was truly at rock bottom. Over the years I have used their legal teams expertise, insurance expertise and countless templates and webinars, they take the stress away. It’s saved me thousands of pounds and it’s expert advice that’s given by qualified and knowledgeable experts. The community support of other FSB members means we can as a group get our voices heard in government when needs be. If you do one thing for your business, join FSB. They feel like my father, always there for sound advice and guidance. Thank you especially to David Richardson, my area representative, he has been outstanding with support during the crisis of Covid and now Brexit!"
2023 - The Big Asks
The months ahead will be crucial for small businesses and FSB will be making their case on every front:
Regulation: We’ll be part of the government-led taskforce charged with reviewing devolved business regulation, which was set up following FSB representations.
Late Payment: Working with colleagues across the UK policy teams, we will also continue to lobby the Scottish and UK Governments on the scourge of late payment, pushing for Audit Committees of large corporates to be given oversight of the payment approach and practices of the company. We’d also like to follow the lead of the Netherlands, who this summer set a new legal maximum statutory payment time of 30 days.
Net Zero: We will make sure the small business voice is heard on Net Zero – particularly around increasing the support and funding that is made available to small businesses.
Business Rates: Alongside campaigning to safeguard the Small Business Bonus Scheme, we will continue to lobby the Scottish Government to keep non-domestic rates as low as possible following the 2023 revaluation. We will also work to support members who have seen their bills rise, informing them of next steps they can take.
The Big Small Business Survey: Being able to evidence our asks will remain core to FSB Scotland’s work.
To achieve this, we will shortly launch a major survey of Scottish small business, which will allow us to take the temperature on the big priority issues.
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Want to know more or get involved?
Email scotland.policy@fsb.org.uk
@FederationOfSmallBusinesses
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