The Federation of Small Businesses (FSB) urges the future UK government to strengthen EU trade ties to counter Brexit’s negative effects on small businesses.
- Brexit has complicated exports for small businesses.
- FSB suggests the importance of proximity in trade relations.
- Improving EU relations is crucial for smaller enterprises’ survival.
- FSB calls for government reforms to support small businesses.
The Federation of Small Businesses (FSB) has called on the future UK government to focus on improving the trading relationship with the EU. According to the FSB, Brexit has created significant challenges for small businesses, particularly those involved in exporting goods. The increased paperwork and logistical issues have made it difficult for these businesses to continue their operations smoothly.
Martin McTague, the national chair of the FSB, highlighted that small businesses are struggling due to their limited resources to explore distant markets. He emphasised the importance of geographical proximity in trade relations. “What we are seeing in specific areas is a really big drop-off for exporters,” McTague said. Additionally, larger companies have the capacity to adapt and even relocate, which is not feasible for smaller enterprises.
In a bid to alleviate some of these challenges, the FSB has included stronger EU trade relations as a priority in its election manifesto. Despite a slowly emerging improved relationship with the EU, the FSB wants any incoming government to place more emphasis on this area. Moreover, previous research by the FSB indicated that around one in ten small firms has ceased exporting or importing in the past five years due to the increased costs and complexities.
The FSB’s manifesto also calls for a variety of reforms to support small businesses. These include changes to business rates, legal measures to tackle poor payment practices by larger firms, and improved access to finance for small companies. Additionally, the FSB is pushing for statutory public procurement targets to ensure a fair share for small and medium-sized enterprises (SMEs).
A recent survey by the FSB found that 96 percent of small business owners plan to vote in the upcoming election. Yet, 20 percent remain undecided on their choice of party. The survey also revealed that tax policies are a significant concern for these businesses, further emphasising the need for government support to foster a better business environment.
Tina McKenzie, the FSB’s policy chair, stated that small business owners are critical to economic recovery and innovation in the UK. “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,” she noted.
The FSB’s call for reinforced EU trade relations and supportive reforms highlights the urgent need for a government that prioritises small businesses post-Brexit.