The Federation of Small Businesses (FSB) has expressed disappointment following the King’s Speech at today’s State Opening of Parliament. Representing small businesses across the UK, the FSB highlights concerns that the government’s announcements did not adequately support small firms or job creation.
The King’s Speech delivered today has faced criticism from the Federation of Small Businesses (FSB). Tina McKenzie, Policy Chair of the FSB, argues that the government’s announcements failed to address the needs of small businesses and promote economic growth. The FSB’s response highlights several areas where the speech fell short, especially in supporting small businesses and fostering job creation.
Lack of Focus on Small Business Growth
The announcements missed the crucial goal of revitalising economic growth and supporting wealth creation in every local community, said Tina McKenzie. The Government’s 105-page briefing document did not mention ‘small business’ once. This oversight raises concerns that Labour may not fulfil its promises to drive real economic growth in the sectors that need it most.
Absence of Small Business Legislation
The FSB criticises the lack of promised legislation to address late payments and poor payment practices by larger companies, which heavily impact small businesses. This omission is a serious issue and could hinder economic growth. The Government must address this matter promptly and fulfil its commitments.
Concerns Over Apprenticeship Levy Changes
The shift from an Apprenticeship Levy to a Growth and Skills Levy introduces uncertainty about the future of small business apprenticeships. The FSB calls for a clear commitment from the Government to protect existing co-investment for small employers. Without this commitment, small businesses might face significant challenges, threatening essential apprenticeship programs.
Industrial Strategy Council Oversight
The Industrial Strategy Council’s commitment, as outlined in the speech, lacks strong representation for small businesses. The FSB worries that the council might be dominated by large corporate interests. It is crucial that small businesses have a meaningful voice in the council to ensure their needs are not ignored.
Employment Rights and Costs
Small businesses are concerned about the proposed employment rights package. Over ninety percent of small employers worry about increased costs and risks associated with hiring employees. Small businesses are vital to our economy, often providing jobs for those furthest from the labour market. They need support to recruit, create new jobs, and expand. The speech’s lack of focus on these issues is troubling.
Call to Action
The FSB will engage with the Government in the coming months to address these critical issues and support small businesses. With the Autumn Budget approaching, the FSB expects significant progress to support economic recovery and growth. Small businesses and the self-employed have the potential to drive economic improvements, but only if the right conditions and support are provided.
