Small businesses want the next government to ensure the costs associated with employing people do not limit their ability to create more higher-paid jobs.
The Federation of Small Businesses (FSB) has published its ‘manifesto’, highlighting what SMEs would like to see from the party that wins power at the general election next month, including incentives to employ apprentices, schemes to support those with long-term conditions back into work, and a cap on visa costs for the smallest of employers.
It found that 90% of small business owners are concerned that business taxes could rise under the next government, while 92% were worried that whoever gains power would increase the costs and risks associated with employing people.
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“Small businesses are the key to securing economic recovery, driving innovation, and creating jobs in all parts of the UK,” said FSB policy chair Tina McKenzie.
“Our small business manifesto sets out the measures needed to create the conditions for that to happen, many of which do not involve additional spending.”
The FSB said the cost of employing people has risen considerably over the last few years, and that the next government needed to limit these costs as they were affecting small firms’ ability to provide more, higher-paying jobs.
The FSB’s manifesto sets out more than 150 proposals including:
- tasking the Low Pay Commission with considering the full range of employment costs when setting the national living wage
- avoiding any new or increased costs on small businesses’ payrolls or additional policies like increased employer auto-enrolment contributions
- capping overall visa and related costs per employee at £1,000 for small and micro-businesses, and piloting a remote visa for remote areas such as the Scottish Highlands
- setting a cross-government target to increase the number of SME apprenticeships in each year of the next parliament
- reintroducing a £3,000 incentive for SMEs hiring an apprentice under 25 years old
- developing new apprenticeships in emerging areas, such as basic use of AI
- expanding the skills ‘boot camp’ model and increasing the accessibility of the ‘help to grow’ management scheme
- introducing a Kickstart-style scheme to support people with long-term health conditions who have found it difficult to access work
- implement a statutory sick pay rebate for small employers
- reintroducing school-age work experience at Key Stage 4 and including employability skills in the school curriculum
- setting high standards on the railways for people travelling for business or work.
It also urged the next government to make it easier for workers to manage their health and medical treatments alongside work by introducing stricter waiting times and service standards in the NHS for musculoskeletal and mental health treatment, which are among the top causes of workplace absence.
Shazia Ejaz, director of campaigns and research at the Recruitment and Employment Confederation, said: “The FSB is the latest business group to suggest ways to repair the ladder of opportunity for young people in this country. We are only going to deal with political parties’ wish to curb access to foreign workers if we iron out the kinks in our domestic talent pipeline – and that means policymakers getting skills and access-to-work policies right. Planning this out with employers is where to start.
“FSB alludes to the importance of buses to enable people to get to work. Getting this right chimes with our own recent research with the Institute for Employment Studies which suggests small and large employers want the next government to prioritise access to financial support for people starting work. They want help for people with the cost-of-work crisis such as with travel costs and workwear for those returning to work after caring, ill health or having been out of work for more than a year.”
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