Small businesses at the heart of the legislative agenda
26 Jun 2014 11:34 AM
The Small
Business, Enterprise and Employment Bill, was introduced to Parliament
yesterday (25 June 2014), will remove barriers to growth for small firms,
strengthen the foundations for a sustainable recovery, and create
jobs.
The
bill builds on the government’s commitment to help make the UK the most
attractive place to start, finance and grow a business.
It
will ensure that businesses that play by the rules cannot be undercut by those
who break the law and that Britain continues to be recognised globally as a
trusted and fair place to do business.
Measures focussed on helping small business
will:
- improve access to finance through increasing the
availability and sources of investment for small businesses, so that they can
secure the funding they need to grow
- open up access to small business credit data, level the
playing field between providers and make it easier for a small business to seek
a loan from a lender other than their bank
- the introduction of ‘cheque imaging’ to
speed up cheque clearing from 6 days to 2
- increase trade credit availability by a potential
£1.8 billion by enablingHMRC to share
non-financial VAT registration data on a controlled basis to
qualifying organisations
- cut
red tape by ensuring regulations affecting business are reviewed frequently and
remain effective. It will also introduce a requirement for government to
publish a target for its impact on regulatory burdens in each parliamentary
term, holding future governments to account
- introduce a Pubs Code and Adjudicator to govern the
relationship between pub-owning companies and their tied tenants, bringing
fairness to the sole traders and small businesses that run approximately 20,000
tied pubs across England and Wales
- enhance the reputation of the UK as a trusted and fair
place to do business by increasing transparency around who owns and controls UK
companies; and helping deter and sanction those who hide their interest in UK
companies to facilitate illegal activities or who otherwise fall short of
expected standards of behaviour.
Business Secretary Vince Cable said:
The
government is working hard to improve the environment for small businesses.
Better access to finance for SMEs, measures to boost trust and
transparency in British business and increasing fairness in the workplace are
key issues that this bill aims to address.
Our
flagship measures will help hard-working people have confidence in their
employers by tackling abuses in zero hours contracts, give publicans a fairer
deal over big pub companies, tougher penalties for those who don’t pay
the minimum wage and greater clarity around who owns and controls our
companies.
Skills and Enterprise Minister Matthew Hancock
said:
Every village, town and city throughout the country is
host to a range of small businesses from shops, garages and cafés, to
manufacturing firms and tech start-ups. We are backing business every step of
the way with the first small business bill, to help create the prosperity and
secure the jobs we need.
Small businesses are the driving force of our economy
and this bill is part of the government’s commitment to back enterprise
and help firms to start-up and scale-up.
The
Federation of Small Businesses (FSB) has welcomed the new bill and the
increased focus on small firms.
John Allan, FSB National Chairman
said:
The
small business bill reflects growing recognition of the role small businesses
have to play in driving forward the economy and the need to do all we can to
support them in that effort.
This landmark bill is welcomed by our members. It
includes measures that we have pushed for in our discussions with government
and indeed all political parties over the last 12 months to help them support
their growth ambitions – such as action on late payment terms for smaller
suppliers and to beef up scrutiny of unnecessary regulation.
The
Small Business, Enterprise and Employment Bill also introduces measures
to:
- stop abuse of individuals on zero hour contracts by
making sure they are not tied exclusively to 1 employer
- deter employers from breaking National Minimum Wage
legislation by amending the power to set the maximum penalty for under payment
so it can be calculated on a per worker basis
- strengthen the rules on director disqualifications to
widen the matters of misconduct courts must take into account when
disqualifying, including conduct in overseas companies, and measures to help
creditors recoup losses resulting from director misconduct
- assist small business expansion overseas by increasing
the support available from UK Export Finance and widening its powers, making it
easier for all businesses, regardless of size, to expand in the international
marketplace
- streamline insolvency law to remove unnecessary costs
and ensure effective oversight of insolvency practitioners so they deliver
their services at a fair and reasonable cost that reflects the work
undertaken
- improve companies’ payment practices so that small
businesses can negotiate fair terms and ensure more of their invoices are paid
on time
- provide new and improved information on learning
outcomes by tracking students through education into the labour market;
identifying which schools and colleges provide the best routes to sustainable
employment.
Notes to editors:
- More information can be found at The Small
Business, Enterprise and Employment Bill.
- The
UK is a great place to set up a business and more people than ever are
beginning new enterprises. The government is backing business every step of the
way and introducing legislation to help make the UK the most attractive place
to start, finance and grow a business. The Small Business, Enterprise and
Employment Bill will help to build a stronger and fairer economy by supporting
small businesses as they compete, and ensure they are not disadvantaged by
those that do not play by the rules. It will foster and back the
entrepreneurial spirit and build on the UK’s reputation as a fair and
trusted place to do business. The bill sets out measures to help hard working
people have confidence in their employers and reduce the barriers that can hold
businesses back from growth.