Touched upon in last month’s Queen’s Speech, Business Secretary Sajid Javid recently put forward a new Enterprise Bill that’s designed to help reduce regulation on small businesses so they can concentrate on growth and will, in turn, create jobs.
Speaking at the Engine Shed business centre in Bristol, Mr. Javid is quoted:
“Small businesses are Britain’s engine room and the success of our whole economy is built on the hard work and determination of the people who run and work for them. As Business Secretary I will always back them and, in my determination to get the job done, one of my first steps will be to bring forward an Enterprise Bill that helps them to succeed and create jobs.”
The Enterprise Bill commits to cutting red tape for small businesses by at least £10 billion over the next five years, with a European Union (EU) Commission also being put together to cut EU red tape, though it’s unclear what affect the upcoming EU referendum could have on these efforts. The Bill also commits to forming a Small Business Conciliation Service to settle late payment disputes.
Small Business Conciliation Service
Designed to settle disputes between small and large businesses over late payments, the Small Business Conciliation Service allows small business owners to avoid expensive legal costs that would otherwise make challenging late payment fees an irresponsible use of their time and capital, as they fear their chances of success are slim.
Speaking in Bristol, the Business Secretary said, “There’s a situation familiar to small business owners up and down the country. A letter turns up from a larger customer changing payment terms, or charging them to remain a supplier and in some cases even deducting that charge on the spot against payment owed. This pattern of behaviour is an outrage. It’s bullying – pure and simple.”
Issues around payment can affect small businesses from both sides. According to the Government, small businesses across the country are currently (as of May 2015) owed over £32 billion in late payments by larger companies, yet the majority of these small businesses are either unaware of their rights surrounding the collection of these payments, or they’re reluctant to bring legal challenges.
Asking for Small Business Input
Speaking at the same event in Bristol, Business Minister Anna Soubry noted that the Government will be speaking with small businesses up and down the country over the coming months to ask for their help in identifying areas that are creating “needless burdens” for small business owners, both at home and in Europe.
Commenting on the Enterprise Bill, Ms. Soubry highlighted the importance of the Government getting behind small businesses, noting, “This will be a no nonsense bill to back small businesses and help create jobs, giving financial security and economic peace of mind to hardworking people across the country.”
Experienced Accountants who can assist you with the New Enterprise Bill
If your small or medium-sized business (SME) is currently inundated with “needless burdens” and Government red tape, consider speaking with one of our professional, experienced accountants here at Tax Agility. We’ve been working with SME owners for many years, helping them to resolve disputes and receive the money they’re owed.
To speak with a professional to discuss what the new Enterprise Bill means for your business, or for any other reason, contact us today on 020 8780 2349 or get in touch with us via our contact page to arrange a complimentary, no obligation meeting.