Government failing SMEs

A survey of small businesses reveals that 70 per cent of those polled do not feel that the Government is doing enough to help them despite the fact that the ‘Start-up Britain’ initiative places start-ups and small firms at the heart of the UK’s economic recovery.

According to the research by skilledpeople.com, small businesses want to see a range of changes to help them grow. Some 44 per cent would like to see more flexible employment laws introduced; 38 per cent would like to see business rates reduced; 30per cent would like the Government to introduce lower levels of corporation tax, while 29 per cent of business owners want to see the Government provide tax breaks to employ unemployed people.

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Big tax changes for small businesses

Small business taxation is facing major reform with the potential merging of income tax and national insurance contributions, new approaches to taxing very small, unincorporated businesses, and a review of IR35 rules, says Francesca Lagerberg, Head of Tax at Grant Thornton.

In his 2011 budget speech, Chancellor George Osborne announced changes to the way small businesses are to be taxed. This follows the advice and recommendations proposed by the Office of Tax Simplification (OTS).

Following its initial review of the tax reliefs available in today’s tax system, the OTS’s second job was to carry out a review of small business taxation (PDF). The interim report, published on 10 March 2011, identifies those areas of the tax system that cause the most day-to-day complexity and uncertainty for small businesses, and recommends where to prioritise efforts in simplifying the regime.

The overwhelming conclusion is that major structural changes are required if the Government is to achieve a genuine and long-lasting simplification of the UK tax system.

Read more: http://www.grant-thornton.co.uk/thinking/elevate/index.php/elevate_templates/article/big_tax_changes_for_small_businesses/#

Coalition’s policies ‘have been bad for small and medium businesses’

Nearly half of small and medium-sized businesses believe that policies introduced by the government since the 2010 election have been bad for them, according to new research.

Only 26% of senior decision makers questioned in the YouGov SME Omnibus survey said the coalition’s policies have been good for business, compared to 48% who expressed the opposite opinion.

Furthermore, three in 10 respondents said they believed tomorrow’s Budget will have a negative effect on their business. Only 7% believe that it will be beneficial, according to the survey, but 48% think it will make no difference to their business.

Read more: http://www.growingbusiness.co.uk/coalition-s-policies-have-been-bad-for-small-and-medium-businesses.html

Small businesses are believed to have outperformed large businesses

According to research by management school Roffey Park, liability insurance holders with less than 50 employees outperform larger organisations in employee wellbeing. However many managers have stated that small businesses need to invest more in staff development or risk stagnation.

The school surveyed more than 1,500 UK business managers and found that small businesses were stronger at leadership, job security, career progression and the ability to survive the recession.

It was found that the more staff an organisation had, the more likely they were to experience poor leadership, conflict and bullying.

Read more: http://www.constructaquote.com/79/section.aspx/1667/Small-businesses-in-a-stronger-position-

Business Expert, Duncan Bratt, talks about the role of small business

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Small firms need support to grow

Research by consultancy group, the Centre for Economics and Business Research (CEBR), revealed that bank lending to small companies had fallen by 4.5% over the past year, while borrowing costs had increased.

The study forecasted that 312,000 start-ups will be created by the end of 2010 and a further 297,000 in 2011, making a major contribution to replacing the 330,000 jobs estimated to be lost as a result of public spending cuts. Furthermore, these firms spend £1.1 trillion on their supply chain annually – 49% of UK business expenditure – and account for £1.6 trillion of total national business turnover, greater than the whole of the FTSE 100.

Read full article: http://www.growingbusiness.co.uk/small-firms-need-support-to-grow.html

Backing small business

The Government has announced plans to help small and medium sized businesses to flourish and to encourage entrepreneurs.

The measures cover issues such as improving access to finance, supporting those starting up new businesses and opening up Government procurement to smaller businesses.

Read full article: http://www.number10.gov.uk/news/topstorynews/2010/11/small-business-56408

Small Businesses ready to capitalise on 2010