Successive governments not understanding small business

10 Jul 2020

Successive governments, and Treasury Civil Servants have never fully understood small business; they were busy further damaging it with IR35 legislation and un-necessary “Making Tax Digital” when the Covid Crisis forced them to kick those cans down the road to next year.

If you talk to the CBI and the TUC and then take advice form one of the periodically disgraced “big Four” accounting firms, you won't be considering small business. There is a small business minister, I've met him, but his influence seems highly limited.

The Institute of Directors have said that small businesses have been overlooked in the Chancellor's latest stimulus package with no help forthcoming for small company directors, who have not been able to receive income support during the pandemic.

A spokesman said: "A glaring omission throughout this pandemic has been the exclusion of small company directors, many of whom have not been able to access income support. Widening grant schemes could help those who have been left struggling without assistance, and help more firms to re-open."

Mike Cherry, chairman of the Federation of Small Businesses, agreed while Gina Broadhurst, of the #ForgottenLtd Campaign for small company directors, added: “The Government's strategy is premised on businesses remaining solvent, but hundreds of thousands of small business owners employing millions of people have received zero support and are on the verge of collapse. At this rate more businesses will fall, never to be seen again.”

Additionally, Andy Chamberlain, of the Association of Independent Professionals and the Self-Employed, said freelancers were “noticeable by their absence” in Rishi Sunak's statement. He urged the Chancellor to introduce a tapered end to the Self-Employment Income Support Scheme as well as the furlough scheme.

You can't please all of the people all of the time, but if you understand what makes the economy tick, you might want to pay a bit more attention to encouraging it.