Week 03 of 2012        Friday 20 January 2012

FSB guest of the day on The Daily Politics
National Chairman, John Walker discussed business issues with Minister for Employment Relations, Consumer and Postal Affairs, Ed Davey and Shadow Small Business Minister, Toby Perkins. Watch again on the BBC iPlayer (or mobile).

Unemployment grows again

The Office of National Statistics issued new figures this week that showed that unemployment rose by 118,000 in the three months to December, taking the total to 2.68 million. The FSB’s 'Voice of Small Business' Index, also released this week, showed that a net balance of 6.5 per cent of small firms are looking to shed staff in the first three months of 2012. Read the press release, the Index and coverage in the Financial Times, Reuters, Sky News, Daily Mail and the Guardian.

Confidence drops to lowest ever level at the end of 2011

Small business confidence fell dramatically in quarter 4 of 2011 to -24.5 – a fall of some 15.2 points over the quarter. And, one in eight (12.6%) firms expects a worsening economic situation in the coming three months. The FSB is calling on the Government to put proposed policies into action. Read the press release and the report and coverage in the Daily Telegraph and the Financial Times.

Sign up to share your views

The FSB is expanding its quarterly survey and from February to better represent your views. If you want to have your say on the issues of the day then sign up to take part in this and the regular survey panels.

Parliamentary Update

Sir Bob Russell MP mentioned our support for Mary Portas’s recommendation that the Government should review how the business rates system can be used to better help small businesses and independent retailers, during a debate on the future of town centres and high streets.

Become a mentor

The FSB has joined forces with GetMentoring to encourage more business people to become mentor and to create employment opportunities. The Small Business Survey 2010 revealed that micro, small and medium-sized business employers who had sought external advice or information over the previous 12 months were more likely to have grown their workforce in that time (21% compared to 14% of employers who had not sought advice) and expected to grow their employment in the next year (29% compared to 17%). Visit the website to find out how to become a mentor and to help more new businesses flourish.

HMRC warning about fake emails

HMRC is warning people not to fall foul of fake emails claiming that recipients are due a tax rebate, and provide links to a clone of HMRC’s website, where they are asked to supply credit card or bank details. HMRC said scam emails should be forwarded to This e-mail address is being protected from spambots. You need JavaScript enabled to view it and then deleted from the recipient's email account and computer.

Get involved in the Youth Contract

The Deputy Prime Minister has encouraged businesses to support the new Youth Contract to help young unemployed people get a job. Over three years from April 2012 it will provide 160,000 wage subsidies worth up to £2,275 each, for employers who recruit an 18-24 year old through the Work Programme.  Find out more about how to support the Youth Contract and how you can benefit from it.

Private waste and recycling service contracts

The policy team is keen to This e-mail address is being protected from spambots. You need JavaScript enabled to view it from members who feel they have been locked into unfair contracts for waste and recycling services provided by private companies.  The FSB is currently calling on the Department for the Environment, Food and Rural Affairs to ensure small businesses are given clearer and fairer contract terms by private waste and recycling companies.

Red Tape Challenge

The Government’s Red Tape Challenge is now looking to hear from businesses affected by regulation in the housing and construction sector.  

Help to develop fraud guidance

Action Fraud, the national fraud reporting and guidance centre, is developing its website to include fraud prevention information for small businesses. It wants to ensure the advice and information produced for the site is practical and genuinely useful for small businesses, so has arranged a series of focus groups in Manchester, London, Birmingham and Cardiff for small business owners. Find out more about how to take part.

Service to help SMEs slash sickness absence costs

A free health advice service has launched for SMEs in England to give them vital help and support to reduce sickness absence. The recent independent review of sickness absence found that all too often the sickness absence system pushes people away from work and employers, especially those who do not have their own occupational health services. This makes it very hard to get independent, bespoke advice for more complex sickness cases.

Follow the FSB on Facebook 

You can follow the activities of the FSB by joining our official fanpage on Facebook. Become a fan to view regularly updated events, photo galleries, lobbying information and have the opportunity to add your own photos and discuss current small business issues.

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FSB News Release

PR 2012 03

Issue date: Tuesday 17 January 2012  

As small firms look to shed more staff, Government must be bolder to help incentivise job creation 

FSB releases new figures on small firms employment intentions ahead of the Government’s response to the Modern Workplaces consultation

New figures from the Federation of Small Businesses (FSB) shows that small businesses will look to shed staff in the first three months of 2012, as it warns that the Government needs to be bolder in its changes to existing employment law to incentivise employment.

Ahead of employment statistics published tomorrow (Wednesday 18 January), figures from the FSB ‘Voice of Small Business’ Index show that a net balance of 6.5 per cent small firms plan to lay off workers in the first three months of 2012 – the highest level since the survey began.

The ‘Voice of Small Business’ Index also shows that a balance of 4.8 per cent of small businesses reduced their headcount in the three months from October to December – slightly less than businesses had expected.

With heavy cuts in the public sector and a steep rise in the number of people unemployed, more job losses by small businesses would make for an extremely difficult labour market.

With unemployment statistics expected to rise again tomorrow, the FSB is urging the Government to ‘think small first’ when it responds to the Modern Workplaces consultation. The FSB is specifically calling for:

•  Micro firms to be made exempt from the extension of the right to request flexible working for all

•  A complete and simplified reform of maternity and paternity leave in the future – doing so in an uncertain economic environment could harm businesses

•  A micro business exemption from proposals on pay audits which will require employers who lose an Employment Tribunal case to carry out a potentially costly, time consuming and complex pay audit

Small business confidence plummeted at the end of 2012 as businesses were hit by high inflation, rising utility bills and reduced spending. So the FSB is calling on the Government to act on policies and initiatives already announced to help boost small business confidence so that they can invest and grow and turn this into good news in 2012.

John Walker, National Chairman, Federation of Small Businesses, said: 

“The beginning of 2012 is beginning to look bleak with confidence incredibly low and businesses looking to shed staff. However, things do not need to be so negative. If the Government makes the right choices and puts action into words we can turn this around. The Government has a good chance to make a real difference to the livelihoods of small firms when it reports on the Modern Workplaces consultation. Tinkering and increasing existing employment laws will only serve to worsen this situation. But by putting simple measures in place, such as excluding micro firms from the right to request flexible working for all, will help free businesses from the shackle of red tape so they can grow, innovate and take on new staff.”

FSB News Release

PR 2012 02

Issue date: Monday 16 January 2012

Small business confidence crashes at end of 2011

Small business confidence plummeted in 2011 as businesses were hit by high inflation, rising utilities bills and reduced consumer spending power according to the latest findings from the Federation of Small Businesses (FSB) ‘Voice of Small Business’ Index.

The Index, comprising some 1,600 responses from businesses across the UK, recorded a score of -24.5 – the lowest level since the Index started in 2010 and is a fall of some 15.2 points over the quarter. Given that economic recovery is relying on business investment to create jobs and support the recovery, the ongoing weak sentiment is worrying.

And, with one in eight (12.6%) firms expecting a worsening economic situation in the coming three months, the FSB is calling on the Government to act on policies and initiatives already announced to help boost small business confidence so that they can invest and grow.

While the short term prospects look weak, an improving inflation outlook will certainly help confidence over the year.  Inflation is expected to fall back sharply this year as the impact of 2011’s VAT rise lessens, with recent energy price cuts an encouraging sign inflationary pressures are finally easing.

Falling inflation should help cash-strapped consumers and give more room for discretionary spending. Businesses will benefit too as the cost pressures they faced in 2011 fade, which should feed into better margins and improved profitability.

Reforms announced by the Government should help too.  The FSB has supported many of the policies outlined in the Growth Reviews and the Autumn Statement, such as measures to encourage bank lending to small businesses and boost investment through the seed enterprise investment scheme.  Proposed reforms to the planning system and government procurement contracts to increase small firms’ access were steps in the right direction too.

However, many of these measures will take time to feed-in.  The key now for all levels of government is to focus on implementation: small firms need to see action to match the rhetoric and to see tangible actions that will benefit their businesses and permanently change the business environment for the better.

John Walker, National Chairman, Federation of Small Businesses, said:

“The message is clear – things are going to get worse before they get better. But, we are hopeful that as the inflationary pressures lessen in 2012, that businesses will become more confident. There are some good policy proposals in the pipeline too.  However, the Government needs to quickly put in place the actions that it has promised. Small firms have heard what the Government has to say but are still waiting to see implementation. We believe that must be the Government’s priority: to make 2012 the year of doing, with the aim of creating a dynamic business landscape in which our entrepreneurs can grow and flourish.”

Charles Davis, Managing Economist, cebr, said:

“The Q4 survey shows that small businesses are fighting a tough battle against a worsening economy. On the upside, falling inflation should ease the pressure on margins and should allow interest and mortgage rates to stay low for at least the next two years.”

FSB News Release

PR 2011 01

Issue date: Monday 9 January 2011  

Olympics legacy will be damp squib for small firms  

New figures show that six in 10 small firms believe the London 2012 Games will not have a positive impact on their business in the long term despite David Cameron saying today that the UK is “on track” for a lasting legacy, the Federation of Small Businesses (FSB) said today.

As the UK marks 200 days until the start of the Olympic and Paralympic Games, the FSB’s ‘Voice of Small Business’ Survey Panel shows that 62 per cent of small firms believe that the Games will have no long term positive impact on their business, despite promises that the legacy of the London 2012 Games will continue for years.

Only seven per cent of small businesses believe the Games will benefit their business overall, and a quarter (25%) expect a negative impact on their business.

The FSB is concerned that when the bid for the London 2012 Games went through, it was sold on the basis that is would create a long legacy for the country, yet small businesses do not believe that they will benefit from this.

With 200 days to go, the FSB is calling on the Government and Olympics Authorities to ensure that small firms are aware of how they can reap the benefits of the Games and the tourism benefits that can come from them.

John Walker, National Chairman Federation of Small Businesses, said: 

“It is worrying that 200 days before the Olympic and Paralympic Games are set to begin, small businesses think it will not benefit their business. This is even more worrying considering the London 2012 Games was sold on the basis of its legacy. We all know times are tough, but 2012 is a year of big events that small firms should be able to benefit from. The Government and Olympic Authorities must help show small businesses how they can reap the rewards from one of the biggest sporting and tourism events the country has seen for years.”

Plymouth has signed up the 25th member of the
Buy With Confidence 
Approved Trader scheme

Consumers in Plymouth are now able to buy with confidence as Plymouth recently joined an initiative aimed at promoting the city’s many good traders and helping consumers avoid rogue traders.

Plymouth City Council joined the Buy With Confidence scheme which is open to many different kinds of businesses; Plymouth had initially encouraged the kinds of businesses that usually contract with their customers in their homes such as builders and gardeners to sign up but we now have a wide range of trades to choose from including retailers and surveyors.

Only good, honest traders get approved because, as part of the application process, the business will be checked for trustworthiness and fair trading practices. Only if the business passes all of the stringent checks will it be able to display the Buy With Confidence logo. Whilst part of the scheme, the business will be monitored to make sure standards remain high.

Inclusion in the list means that the local business aims to give a good, reliable and customer friendly service. Displaying the Buy With Confidence logo shows that the business is willing to go the extra mile for it’s customers.

How the scheme works

• There is a set fee for businesses to sign up; this depends on the number of employees.
• Potential for increased sales
• Promotion on Buy With Confidence website
• Buy With Confidence logo can be used on all advertising, paperwork and vehicles
• Membership certificate and weather-proof stickers provided to advertise membership 
• Hotlink to the business website via Buy With Confidence website 
• Increased consumer confidence in the business
• Impartial help and advice if problems arise
• Inclusion on the Which?Local website
• The scheme is part of a national campaign: www.buywithconfidence.gov.uk