APPENDIX ONE
SMALL BUSINESS
SURVIVAL PACKAGE
FSB ONE
PAGE BRIEFING
24-10-2009
SMALL BUSINESSES
ARE UNDER
THREAT. MORE
THAN 80% SAY
THE COST
OF OPERATING
HAS INCREASED.
OVER 50% ARE
BEING PAID
LATER AND
ACCESS TO
FINANCE HAS
DRIED UP.
The FSB believes that it is now time to tear up the
rule book in order to save the millions of businesses that drive
our economy and employ the majority of the UK workforce.
Freeing up access to finance:
The FSB proposes a £1 billion Small Business
Survival Fund formed from the Small Firms Loan Guarantee Scheme.
The Survival Fund will:
— Increase short term funding to £1billion,
to be reviewed in six months time.
— Allow businesses to apply for intangible
outcomes such as working capital and staff training, as well as
tangible outcomes from finance.
— Be provided by all re-capitalised banks,
and the Financial Services Authority (FSA) will stipulate that
all banks and Independent Financial Advisors promote the fund.
— European Investment Bank money should
be bought by the Government and distributed to the Survival Fund.
— Any business employing less than 250
people should be able to apply.
Tackling late payments:
A recent survey revealed that there is £18.6
billion in outstanding payments to the SME sector. The average
figure owed is £30,000.
The FSB welcomes moves by Government, Local Government
and the Opposition to ensure payments by public bodies are made
within 10-20 days.
But, the Government can go further.
Since the Companies Act of 1985, Public Companies
have been obliged to submit their payment terms to Companies House.
However, this has not been fully enforced and
Companies House lacks the resources to fulfill its role.
The FSB calls for an immediate end to late payment,
through the following practical steps:
— Full enforcement of the 1985 Companies
Act.
— Double the resources allocated to Companies
House and turn it into a fully functioning enforcement agency.
— Publicly name, shame and fine companies
reneging on the payment terms registered with Companies House.
Open up public procurement:
Only 16% of public procurement contracts are
awarded to SMEs. The Chancellor has pledged to take action on
this.
This could be resolved with the following simple
measures:
— Introduce a single pre-qualification
questionnaire for all public procurement contracts.
— Scrap the £180 fee for receiving
access to public procurement contracts via Supply2.gov.uk
FSB SMALL BUSINESS
SURVIVAL PACKAGE
These actions could be introduced in a matter
of weeks and could deliver instant results.
3. Introduce a single pre-qualification questionnaire
for public procurement.
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