Budget 2005 - FSB gives a small business reaction

FSB National Chairman Carol Undy gave the following reaction to Gordon Brown’s ninth budget speech:

On regulatory enforcement:

“The Hampton report is encouraging. There are currently over 300 different kinds of inspections carrying a right of entry into business premises and the whole army of inspectors desperately needs to be rationalised.”

“Every single inspection interrupts day-to-day business. Hardworking business owners must be able to concentrate on what they are good at - job creation and wealth generation. We urged Philip Hampton to work towards a single general-purpose inspector. His recommendation to merge 35 inspectorates into 9 is an important start.”

On red tape:

“Businesses have been promised bonfires of red tape in the past and they have never been ignited.”

“The Better Regulation Taskforce report is certainly radical. A more systematic assessment of the administrative cost of regulation should replace the assumptions that are made at present. A “one-in-one-out approach” may bring about a much needed cultural change within the civil service and a commitment to tackle “gold plating” is welcome.”

But whether or not the report will result in “fundamental change” and “a red tape revolution” awaits to be seen. Businesses are cynical because of past broken promises - 30 reports, seven white papers and two acts of parliament during the last 20 years alone.”

Other issues:

On payroll burdens:

“At the 2004 budget, the Chancellor said that he accepted the case for the Inland Revenue paying the working tax credit directly to claimants. It was about time he announced the timetable for this change, and employers and employees alike will welcome the introduction of direct payment from November 2005.”

On the administration of tax:

“Hardworking business owners will welcome the introduction of a range of flexible payment options for tax bills and we call for them to be implemented immediately.”

On commercial rents:

“The Government’s failure to outlaw upwards only rent review clauses is a cop out.”