ON THE RECORD

ON THE RECORD THE LATEST NEWS FOR FSB MEMBERS

TAX

Rule out tax rises, FSB urges Chancellor

HE TREASURY SELECT COMMITTEE’S

Tsecond report into the economic eff ects of Covid-19 has called for the Chancellor to consider sector-specifi c extensions to the Government’s furlough programme, due to end in October.

As well as urging fl exibility on the furlough scheme, the Treasury Select Committee report called on the Chancellor not to raise taxes too early, as this could “stifl e economic recovery”.

FSB National Chairman Mike Cherry said: “Th e Treasury Select Committee’s assessment that tax rises would stifl e 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.

“Th e 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 suff ered because of Covid-19. “Th en of course there are those who have been left out of support mechanisms entirely, including company directors and the newly self-employed. Th e 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, off ers 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 confi dence.

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 increased their use of digital technologies.

“We are also asking Government to widen the defi nition of ‘R&D’ and introduce digital vouchers for small businesses to make it easier for them to adopt digital technologies. Many small fi rms already rely on Google and the UK’s growing tech sector, and now want to fi nd new ways to boost small businesses’ digital growth. I’m pleased to see this happen through Make It Click.” WORK PLACEMENTS

Kickstart scheme disappoints small fi rms

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 diffi cult to access for those hiring fewer than 30 roles through the scheme, who as it stands will need to fi nd 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 fi rms.”

FOOD AND DRINK

Extend Eat Out to Help Out

SB HAS SPEARHEADED A

Fcampaign to extend the Eat Out to Help Out scheme for Aberdeen, after the city faced a lockdown period that meant restaurants and cafés were unable to benefi t.

FSB wrote to the Secretary of State for Scotland, Alister Jack MP, about the issue,

while a petition supporting such a move gathered more than 3,600 signatures. Feedback from FSB members suggest that many operators believe they lost between £2,000 and £50,000 by not being able to benefi t from the initiative.

On a UK-wide basis, FSB is also asking the Chancellor to look to extend the scheme.

Andrew McRae, FSB’s Scotland policy chair, said: “Th e Eat Out to Help Out scheme has been a roaring success, not only giving fi rms a welcome shot in the arm but also encouraging people to rediscover the brilliant local restaurants, pubs and caf és on their doorstop.”

TOURISM

FSB calls for Tourism Hibernation Scheme to help boost fl agging sector

Tourism businesses in Wales need a lifeline by Government if they are to survive, it has been claimed, following the publication of a new survey.

The latest Wales Tourism Business Barometer revealed two-thirds of businesses in the sector still have staŬ on furlough and an extended period of staycations is needed to boost business.

Ben Francis, FSB Wales Policy Chair, said: “FSB Wales has already called on Welsh Government to institute a Tourism Hibernation Scheme – a potential mix of loan and grant funding which includes oŬ ering tourism fi rms loans at preferential rates, repayable once those fi rms are back in the profi table part of the 2021 season. Such a scheme would be aimed at supporting a tourism fi rm to hibernate through the winter of 2020-21 before reopening next spring.

“It is clear that many fi rms need a lifeline to help see them through this incredibly diffi cult period, and if Welsh Government does not step in soon then time is going to very quickly begin to run out for Wales’ tourism fi rms.” ONLINE

FSB Customer Care Twitter account launches

As part of FSB’s ongoing strategy to oŬ er the best customer care to members and potential members, FSB has now launched a new Twitter account. @FSBCustomerCare will be used by the customer services team as a further channel to help members and potential members with enquiries and concerns. Our corporate communication account @fsb_policy remains unchanged, as do our other FSB nation and region Twitter accounts.

COVID-19

Targeted help now needed in Northern Ireland

FSB Northern Ireland Regional Chair Tina McKenzie has called for targeted support to be given to business sectors that are still closed due to coronavirus.

The arts and creative industries in Northern Ireland have been massively aff ected. Pubs and private members’ clubs that do not serve food or have outdoor space available are still required to close – unlike in England, where they can open.

Ms McKenzie said: “It would be a travesty if the legacy of this crisis is that honest businesses who have abided by the regulations are punished, rather than compensated. They have done the right thing for us, so Government must do the right thing for them.”