Policy makers urged to help SMEs in the lead up to Christmas spending

Policy makers are being urged to make trading easier for the country’s smaller sized businesses in the lead-up to the festive season.

The Federation of Small Businesses (FSB) has put together a list asking for changes that will, in particular, help the hospitality and retail sectors this winter.

The ‘Tinsel List’ as the FSB named it, is as follows:

• Make high streets easily accessible with available parking, and increase park and ride. Local transport must be reliable, affordable and well connected.
• In order to help growth across the country, the VAT threshold should be raised from £85,000 to £100,000. Many firms halt trading near the end of the tax year to avoid hitting the current limit and incurring additional costs.
• To remove 200,000 small firms out of the rates system, the Small Business Rates Relief threshold should be increased to £25,000.
• Cheaper energy costs – energy firms should more widely adopt FSB’s proposal to allow small firms that negotiated their contract at the height of the energy crisis last year to be able to ‘blend and extend’ their contracts to take advantage of lower, wholesale prices. Lower energy bills will allow firms to keep their prices low for consumers.
• Reinstate tax free shopping for international visitors, to add £4bn of GDP through increased retail and tourism, secondary spending and small producers – and signalling that the UK is open for business.

FSB National Chair Martin McTague, said, “The summer season will soon be drawing to a close and although the festive season might seem like a long way off, now is the time to take steps to help claw some of that confidence back.

“The next big wave of tourists is likely to flock here to spend their hard earned cash on Christmas gifts, explore yuletide markets and savour classic roast dinners – indeed, the UK has always been a popular holiday destination over winter.

“Meanwhile, taking steps to ease the cost of doing business on small firms would in turn ease prices as people across the country start Christmas shopping or planning a work party.

“These small businesses have already dealt with numerous challenges this year, from rising interest rates to high inflation and the extra weight of energy costs, but now is the chance to make a real difference so we can end the year on a high note.”

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