FSB sets out key election priorities for Scotland’s small businesses – The Intermediary – Latest UK mortgage news

The next government “can take significant steps” to boost small business in Scotland, according to the Federation of Small Businesses (FSB) in Scotland, which has set out the key actions needed from the next UK Government.

Andrew McRae, policy chair at FSB Scotland, said the coming election was “vital for small firms north of the border, given the significant number of steps the next UK Government can take to boost business.”

FSB’s research found that 90% of small business owners were concerned business taxes could rise under the next Government.

McRae said: “Raising the VAT threshold to £100,000 and then uprating it annually in line with inflation would remove a major barrier for growth for small businesses, as would introducing a smoothing mechanism for firms set to hit this threshold.

“We’re also calling on the next Government to increase and automatically uprate the Employment Allowance – effectively the tax threshold for employer’s National Insurance Contributions – in line with any increases to the National Living Wage.

“Ensuring thresholds keep up with wage increases guards against stealth tax rises on small business employment.

“We also need action on the energy market, where some key issues for small businesses remain.

“The next Government could provide greater protection from cowboy providers by extending the 14-day cooling off period available to domestic customers to all micro-businesses.

“Regulation to control third-party energy brokers could also improve trust in the sector.

“Our UK FSB manifesto also sets out a wide range of asks to make the country a better place to start and run a business, on everything from access to finance, to tax-free shopping, to reducing the cumulative regulatory burden for small businesses.

“On immigration, we’re also keen that the next UK Government pilots a remote visa to benefit remote areas, such as the Highlands, in line with the Migration Advisory Committee recommendation.”

Key actions FSB said the next UK Government could take to support small businesses in Scotland were:

Increase and automatically uprate the Employment Allowance annually in line with any increases to the National Living Wage, to prevent stealth tax rises on employers as wages increase and to support small business employment.

Increase the VAT threshold to £100,000 and then uprate the threshold in line with inflation, removing a major barrier for growth for small businesses and recent start-ups, and introduce a smoothing mechanism for businesses when they grow above this threshold.

Introduce a new UK tourist tax-free shopping scheme to show the country is open for business, attract more high-spending overseas visitors and drive growth in our tourism, retail and hospitality sectors.

Provide greater protection for all small businesses in the energy market and extend the 14-day cooling off period available to domestic customers to all micro-businesses.

Commit to introduce Third Party Intermediaries regulation into the energy market to eliminate unethical practices in the sector and improve trust.

Return decision making on shared prosperity funds to the devolved national government level to ensure better regional economic strategy when funding projects.

Back the British Business Bank with additional long-term public funding designed to leverage in more private finance and grant more flexibility to deliver on regional growth, net zero and innovation, and track where money is allocated in terms of size, protected characteristics and geography of small businesses.

Focus on reducing the number of individual steps or individual regulatory requirements small businesses must take to comply with regulations as a whole, in order to minimise the burden of compliance with legitimate regulatory goals.

Work constructively with devolved nations to ensure better procurement across the UK, so every nation can benefit from more open public sector supply chains.

Pilot a remote visa to benefit remote areas, such as the Highlands and Islands, in line with the Migration Advisory Committee recommendation.

FSB’s full UK General Election manifesto set out more than 150 pro-business policy proposals.