The Chancellor should cement the government’s commitment to small businesses in his Autumn Statement, according to the Federation of Small Businesses (FSB).

The FSB has called for a strong stand against late payments; an extension to the 75% business rates discount for retail, hospitality and leisure businesses beyond March 2024; and training in new skills to be tax-deductible for the self-employed.

It has also urged action to increase housebuilding through the introduction of a new Brownfield Development Relief and new measures to help reduce health-related labour market inactivity.

Martin McTague, National Chair of the FSB, said:

‘This Autumn Statement cannot be business as usual. We need focused action. With inflation barely budging, the Chancellor has a golden opportunity to spur the economic vitality the UK needs.

‘We need clear plans to help small businesses grow. Small firms were key to helping the economy bounce back in 2008, and to replicate that, we need to face this issue head on.

‘The government must act swiftly to end late payments, extend business rate relief and eliminate the perverse disincentive against acquiring new skills.’

The 2023 Autumn Statement will be presented to Parliament on 22 November.

Internet link: FSB website GOV.UK

HMRC has urged almost 430,000 young people with an unclaimed Child Trust Fund (CTF) to claim their cash.

CTFs are tax-free savings accounts that were created for every child born between 1 September 2002 and 2 January 2011. The government contributed an initial deposit of at least £250. Family and friends can contribute up to a maximum of £9,000 in any one year into an existing CTF account.

CTF accounts began to mature in September 2020 when the first children turned 18.

HMRC revealed that there are currently 5.3 million open CTF accounts, and that more than 500,000 matured CTF accounts have been claimed or transferred into an ISA since September 2020.

Angela MacDonald, Deputy Chief Executive at HMRC, said:

‘Many 18-21-year-olds are starting out in first jobs or apprenticeships, starting university or moving into their first home and their CTF is a pot of money with their name on.

‘I would encourage young people to use the online tool to track it down or, for parents of teenagers, to speak to them to ensure they’re aware of their CTF. It could make a real difference to their future plans.’

Internet link: HMRC website

Less than 1% of small firms have benefitted from key local support schemes across England on net zero, according to research from the Federation of Small Businesses (FSB) and Warwick Business School.

The research has raised concerns over the reach and accessibility of the programmes as the UK’s 2050 target edges closer.

Small businesses also face future challenges due to the changing funding landscape for net zero business support in England. While local authorities emerge as the most common contributor, the European Regional Development Fund is no longer available due to Brexit.

The FSB makes several recommendations, including a national ‘Help to Green’ scheme, consisting of an online hub of practical information on reducing energy usage and carbon emissions.

Richard Askew, FSB England Policy Unit Chair, said:

‘Small businesses play a critical role in reaching net zero by 2050 and it’s encouraging to see that many firms are taking steps to mitigate their impact on the environment – from installing basic measures such as LED lighting to becoming fully self-sufficient microgenerators.

‘But reaching net zero is a complex process and there are still many small businesses that lack the money, resources and time to progress their decarbonising efforts.’

Internet link: FSB website

The number of payments made with cash rose for the first time in a decade in 2022, according to data published by UK Finance.

According to UK Finance, the total number of payments made last year increased to 45.7 billion from 40.4 billion in 2021. 50% of all payments in the UK were made using debit cards, and the number of cash payments rose to 6.4 billion.

The data also showed that almost a third of all adults in the UK are registered for at least one mobile payment service and 86% of individuals use remote banking.

Businesses’ payments accounted for 13% of all payments made in the UK during 2022, and consumers made 87% of all payments.

Adrian Buckle, Head of Research at UK Finance, said:

‘During 2022 we saw increased use of contactless, online banking and mobile payments, although cost-of-living challenges meant that some people preferred to use cash to help with their budgeting.

‘Changes to shopping and travel habits, particularly related to the rise of hybrid working, led to a big jump in the volume of transactions made. Debit cards remain the most popular way of paying, with them now accounting for half of all payments made in the UK.’

Internet link: UK Finance website

The government has been slow to recover losses of £1.1 billion from fraud and error in Covid grant schemes, according to MPs in the Public Accounts Committee (PAC).

The latest PAC report found that after spending £22.6 billion on business support schemes during the pandemic, the government had only recovered £20.9 million of the estimated £1.1 billion in fraud and error losses by May 2023.

The Department for Business and Trade (DBT) said it would take until the end of 2025 to recover the losses from fraudulent claims and estimated that it would be ‘very expensive’ to check the veracity of every claim.

The Covid grant scheme ran for two years from March 2020 to March 2022, and local authorities handled applications from businesses.

PAC Chair, Dame Meg Hillier MP, said:

‘The government must not wait for the conclusions of the Covid inquiry to learn the lessons laid out in this report. Never again should a national emergency find policy being written as we go along, without firm planning and good local data, with local authorities not properly funded to work in partnership on the support required.

‘The next emergency must find the government rigorously prepared with an understanding of the optimal means to support businesses through difficult times.

‘The lack of planning from government also meant that a door was left wide open in these schemes to fraudsters who took shameful financial advantage of schemes that were designed with national solidarity in mind.’

Internet link: Parliament website