THE FORUM OF PRIVATE BUSINESS: FPB calls on UK Government to adopt proposals outlined in the Small Business Act for Europe

Jun 26, 2008 (M2 PRESSWIRE via COMTEX) -- SBCO | Quote | Chart | News | PowerRating -- The Forum of Private Business (FPB) believes that proposals to support small businesses in the newly-published Small Business Act for Europe should be made key components of the UK Government's enterprise strategy. The FPB is urging the Government to go one step further than the Act's call to think small first', by prioritising the concerns of the UK's smallest firms.

On Monday, 23 June 2008, the FPB's Chief Executive, Phil Orford, spoke at a conference in Brussels about the implications of the Act for small firms. He launched the FPB's campaign to persuade European Union (EU) Member States to 'think smallest first'. Mr Orford invited delegates to embrace new opportunities to protect the most vulnerable of small firms.

"The Act addresses the majority of the FPB's concerns, which were outlined in our submission to the consultation in March," said Mr Orford. "In particular, it highlights the key issues of improving access to public procurement for small firms, reducing rates of VAT, and tackling the scourge of late payment, which is a perennial concern for many of the UK's smallest firms needing to maintain a healthy cash-flow in order to survive."

Just this week, a snapshot survey of the FPB's members' opinions revealed that 81% believe the scale of late payments has worsened over the past year. Further, one-third of all respondents fear that their businesses will be in danger of going into administration if the current level of late payments continues.

"In the past, the UK Government has championed much of what has been said in the Act," Mr Orford added. "However, given the lack of a mandate compelling Member States to implement these proposals, it is important that the Government now takes on the mantle of supporting the UK's smallest businesses, in order to help them to grow by implementing real policies designed to address their needs."

The FPB is urging Ministers to seize the opportunity to tackle the dual burdens of disproportionate tax and over-regulation, which the FPB's members feel are the most significant barriers to starting and growing a business.

In a survey carried out in 2007 for Referendum, the FPB's quarterly survey of members, a huge 97% of respondents said that the UK had become a worse place in which to do business as a result of the Government's tax regime. In addition, the FPB's members voted health and safety as the most onerous administrative burden they face (30.3%); followed by PAYE and National Insurance (25.1%); maternity and paternity issues (11.0%); dismissal and redundancies (9.4%); and absence/sickness (7.4%).

The Act also calls on EU Member States to encourage local authorities to divide contracts into lots, where appropriate, thereby making them more accessible to smaller firms. In addition, the announcement that a directive will be introduced on reduced rates of VAT will, if properly implemented, enable the UK Government to introduce reduced rates for locally-supplied services, which are most often provided by small, local, firms.

Notes to editors

The FPB launched its Think Smallest First' campaign on Monday, 23 June 2008. Further information is available at: www.thinksmallestfirst.org.

To coincide with the launch of the Think Smallest First' campaign, the FPB also unveiled its petition on the Downing Street website on Monday, 23 June 2008: http://petitions.pm.gov.uk/Small-businesses/.

Broadcast media - the Forum of Private Business now has ISDN capability and can provide comment, in quality audio, at short notice.

The FPB can also provide journalists with localised and sector-specific case studies.

The FPB is pleased to support the Children's Cancer and Leukaemia Group (CCLG): www.fpb.org/charity

The FPB now has an online discussion forum, on which people can share information, join the latest debates affecting small businesses in the UK and vote in online polls. Visit the forum at www.fpb.org/forum.

About the Forum of Private Business

The Forum of Private Business (FPB) was formed in 1977 and fights on behalf of private businesses. The FPB represents approximately 25,000 UK-based businesses, which in turn employ in excess of 600,000 people.

The FPB also provides a range of business services aimed at increasing member efficiency and profitability.

CONTACT: Phil McCabe, Media and PR Officer, The Forum of Private Business Tel: +44 (0)1565 626 019 Tel: +44 (0)1565 654 673 (ISDN) Tel: +44 (0)7775 756 312 e-mail: phil.mccabe@fpb.org www.fpb.org

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