Small firms will look to the upcoming Autumn Statement for signs that the
government understands their operating concerns, says the Federation of Small
Businesses (FSB).
The business group said that UK businesses need urgent action to help stem the
issue of late payment. It says that large corporates use late payments to offset
interest rate rises by 'demanding, in practice, free credit from their
supply chains'.
The FSB is also urging Chancellor Jeremy Hunt to overhaul the business rates
system and has called for an extension of the 75% business rates discount for
small and medium-sized enterprises (SMEs) in the retail, hospitality and leisure
sectors, as this discount is set to expire in April 2024. It said that these
sectors have been 'acutely affected' by falling confidence levels and
economic headwinds.
Martin McTague, National Chair of the FSB, said that the recent decision by the
Bank of England not to raise interest rates will 'give firms breathing
space'.
He continued:
'[The] unexpectedly large drop in GDP is a sign that the painful interest
rate rises we have endured are acting as predicted, and we urge the Bank to
allow time for the lag between rate hikes and the full effect on spending to
be fully observed, so that there is less risk of overshooting and causing
unnecessary economic damage.
'Small firms need some respite, and now will look to the Autumn Statement for
signs from the government that it's listening and understands their
concerns. As a nation, we urgently need action to stem late payments, which
are used by large corporates to offset interest rate rises by demanding, in
practice, free credit from their supply chains.'
Chancellor Jeremy Hunt will deliver the 2023 Autumn Statement on 22 November.
Internet link: FSB website GOV.UK