ON THE RECORD TAX
Rule out tax rises, FSB urges Chancellor T
HE TREASURY SELECT COMMITTEE’S
second report into the economic effects of Covid-19 has called for the Chancellor to consider sector-specific extensions to the Government’s furlough programme, due to end in October. As well as urging flexibility on the furlough scheme, the Treasury Select Committee report called on the Chancellor not to raise taxes too early, as this could “stifle economic recovery”. FSB National Chairman Mike Cherry said: “The Treasury Select Committee’s assessment that tax rises would stifle a nascent recovery is the right one. We need a pro-business approach now more than ever. It should stick to its commitments on
tax, and NICs in particular, while investing in initiatives to support entrepreneurship, innovation and job creation. “The priority should be protecting small businesses that have been disproportionately impacted by coronavirus, including those caught by local lockdowns, subject to continued national restrictions, or with staff that have directly suffered because of Covid-19. “Then of course there are those who have been left out of support mechanisms entirely, including company directors and the newly self-employed. The Treasury Select Committee has rightly pointed out that these individuals are in urgent need of government support.”
LEARNING
Digital skills lifeline for small businesses A new free hub to boost online skills and drive businesses forward has been launched by Make It Click, a charitable skills initiative funded by Google. The new Make It Click small business hub, supported by FSB, offers small businesses an easy, convenient way to boost online and IT skills. It includes free online learning resources to help business owners and employees increase digital know-how and confidence. Skills range from beginner courses on word processing to
social media marketing and online accounting, which were the top skills small business owners said would help to boost their business during the pandemic. Mike Cherry, FSB National Chairman, said: “Delivering support to help small businesses increase their digital skills is crucial. The pandemic is making this even more of a priority; FSB research found that in early lockdown, 40 per cent of small businesses adopted or
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increased their use of digital technologies. “We are also asking Government to widen the definition of ‘R&D’ and introduce digital vouchers for small businesses to make it easier for them to adopt digital technologies. Many small firms already rely on Google and the UK’s growing tech sector, and now want to find new ways to boost small businesses’ digital growth. I’m pleased to see this happen through Make It Click.”
WORK PLACEMENTS
THE LATEST NEWS FOR FSB MEMBERS
Kickstart scheme disappoints small firms The Government has introduced a kickstart scheme in England, Scotland and Wales, aiming to create hundreds of thousands of high quality six-month work placements for those aged 16 to 24 who are on Universal Credit and deemed to be at risk of long-term unemployment. Funding available for each job will cover 100 per cent of the relevant National Minimum Wage for 25 hours a week, plus the associated employer National Insurance contributions and employer minimum automatic enrolment contributions. However, FSB National Chair Mike Cherry said: “Many small businesses will be disappointed to see this announcement, which feels more aligned to the needs of larger businesses. “Without further work, the scheme will leave many without any employment support after waiting for it for so long. Crucially, it is more difficult to access for those hiring fewer than 30 roles through the scheme, who as it stands will need to find intermediaries. There is currently no guidance for how to become an intermediary and how they will operate the scheme. “To hire 30 individuals is just beyond the means of most small businesses, many of which have far fewer employees or don’t have the HR support on hand to introduce that number of new employees. The Government should issue guidance to make it easy for small business organisations to become intermediaries, or a direct application route for small firms.” firstvoice.fsb.org.uk
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