Government must not exclude small firms from job creation plans, says business group

The Forum of Private Business is urging the Government to ensure small and medium-sized businesses – which already employ almost 60% of the private sector working population – are central to its job creation plans.

The call followed a Downing Street summit (Jan 10) hosted by the Prime Minister, David Cameron. It was attended by 19 of the UK’s largest companies but no organisation representing the country’s 4.8 million small businesses.

“Individually, many small businesses feel that they are unable to present their concerns to government and rely on us to speak out as their co-ordinated voice,” said the Forum’s Chief Executive, Phil Orford. In this light, it is important that, in the future, we are given a prominent seat at the table when it comes to discussing such crucial issues as job growth and barriers to it, particularly employment red tape. Failure to listen to small business owners about employment will only further alienate them and fuel their concerns that they are, in reality, an afterthought at best.”

There have been reports that the Prime Minister is set to unveil an employers’ charter’ aimed at boosting SME job creation – widely seen as central to creating a private-sector led economic recovery based on a resurgent small business sector. In order to reduce instances of workers’ ‘vexatious claims’ against employers, the charter is set to include measures such as doubling the period in which a staff member has to have worked to be eligible to make an unfair dismissal claim to two years and a charge for employees seeking to take firms to industrial tribunals.

Mr Orford added: “Any measures that make it easier to recruit employees and make key staffing decisions so small businesses can truly take advantage of emerging opportunities are to be welcomed. However, a lot more must be done to stimulate employment, including addressing the tax burden and freeing-up business owners from the £2.4 billion annual cost of compliance with employment law. Reducing this should be a central pillar of the Government’s review of red tape.” Imperial College London.