This week the FIS responded to the Government Consultation on supporting small businesses. The consultation required response to 15 questions looking at current Government support for Small Businesses and Start-ups and where and how this could be improved.
In terms of priorities the FIS response focussed on:
- Payment practices, Credit Availability and Insolvency Regulation
- Fixing a broken Skills and Employment System
- Responsible public sector procurement
- Eliminate unreasonable risk transfer
In the response FIS noted the complexity in the regulatory structure, the impact of rising costs of compliance and employment and complexity associated with Government Grants and loans and lack of support from R&D that is near to market beyond Annual Investment and R&D Tax Allowances which, whilst useful do not provide upfront support to help SMEs raise necessary investment capital. The overall difficulty in accessing credit on reasonable terms also featured strongly in the FIS response.
FIS also drew out the lack of protection for SMEs in existing Insolvency Regulations, the softness of intent and enforcement of Late Payment Regulation and concerns about contractual complexity and growing legal costs.