Chancellor has listened to business, says FSB

Federation of Small Businesses

Responding to the Autumn Statement delivered this afternoon by the Chancellor, Simon Edmondson, FSB Regional Chairman for Manchester & North Cheshire said: “We were seeking a business friendly Autumn Statement, and that’s precisely what we got.

"Businesses will be breathing a sigh of relief that Small Business Rate Relief has been extended again. While the FSB is delighted to see the double small business rate relief remain for another year, news that a full review of the outdated business rates system will happen is something we’ve long argued for.

“The current system is out of date and frankly needs to be put out to grass. It’s complicated, opaque, regressive and unresponsive to changes in economic conditions. Many of our members tell us paying business rates is their third biggest cost after rent and wages, yet the tax is poorly targeted and not based on ability to pay.

“All businesses will be grateful for this review, but let’s be absolutely clear on what businesses want - fundamental reform of the business rate system. The announced package of renewed reliefs, will also be essential, as they will help bridge the gap until fundamental reform can deliver the change everyone agrees must now come.”

On changes to the National Insurance amounts employers will pay for young apprentices, he added: “The National Insurance relief for businesses taking on apprentices under the age of 25 will encourage businesses to take on even more young people and tackle the UK's skills gap head on.

“However, this will need to be supported by a reformed apprenticeship framework and funding mechanism that does more to encourage small businesses to invest in developing their workforce through high quality apprenticeships. We look forward to working with the Government to ensure this happens.”

And lastly on fuel duty: “This is great news for businesses, the vast majority of which are affected in one way or another when pump prices are high. This latest freeze means businesses can look forward to another 12 months without having to factor in a rise at some point in 2015.”