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Because Toolbusiness+Hire has many readers in this sector we know how many complications and trials running a small tool shop can throw up. With the big chains able to offer low prices, regulations getting ever tougher many owners often complain that the odds are against them. Yet independent shops are valued by many of their customers, as our editors monthly reports show, and it would seem our political masters are beginning to realize small businesses are worth consideration.
This issue’s Focus article includes two reports on government initiatives that may help take just a little of the strain of local shop owners, and other small businesses.
Move To Help Small Shops Stay Open
The Forum of Private Business (FPB) is backing a move to help small retail premises stay open. The Retail Development Bill, which requires local authorities to establish support schemes, was last week introduced in the House of Lords by the Liberal Democrat’s Lord Cotter.
If it becomes law, the Bill will ensure that support is made available for struggling, ‘class one’ shop premises, which might otherwise be forced to close.
Authorities would have to advise existing retailers, or those proposing to open shops, about the different forms of ownership available to them. Financial support would also be available where three or more individuals formed a cooperative or partnership in order to run a small retail premises.
Under the Bill, the Government would review the retail business rates applied to small shops, focusing on the level of those rates as a percentage of annual turnover, in comparison with large and medium-sized premises. The review would take into consideration how rates impact on the profitability of a business, its ability to support its owners and employees, and the costs and benefits of reducing the rates.
“Local authorities have a vested interest in promoting the growth of local retailers and should look on this review as a chance to make their communities better places in which to do business,” said the FPB’s Policy Representative, Matthew Goodman. “More importantly, this is a fantastic opportunity for the Government to lessen the impact that business rates have on small shops, both financially and administratively.”
The Government would also establish an Office for Retail Planning (ORP) to carry out various tasks, such as representing public concerns in the retail planning process, and promoting the interests of customers in relevant markets by encouraging competition. The ORP would be responsible for maintaining the availability of different classes of retail premises, as well as a broad range of high-quality retail services, across the UK.
Mr Goodman warned that care must be taken not to add to the existing burden of red tape faced by the owners of small businesses.
“We should also be wary of adding an additional layer of red tape to the planning process,” warned Mr Goodman. “In particular, this review should consider the administrative burden placed on small businesses from the creation of an ORP.”
Small retailers who own vacant premises are bracing themselves for a hike in business rates. From 1 April 2008, business rates relief for empty shops and offices will be limited to three months, and six months for factories. After this, they will have to pay the full amount. At present, empty retail and office properties pay only 50%, following an initial three-month exemption.
Lord Cotter said he hoped that the Bill would revitalise high streets by encouraging more small retailers to open shops.
“It will involve a business rates review in order to compare small shops’ costs, which are frequently unfairly high, against those incurred by large supermarkets and big businesses,” he explained. “The Bill will introduce a retail development plan for each area of the country to safeguard against the over-expansion of the supermarkets. There will be a number of provisions to maintain the character and diversity of high streets, involving the local community so that they have a powerful voice.”
Free Advice For Small Businesses
Many small businesses may be paying for employment law advice which they could be getting for free, new Government research has revealed.
The Department for Business, Enterprise and Regulatory Reform (BERR) survey found 40 percent of businesses questioned as part of planning for its new employment law guidance campaign, said they were likely to seek outside advice for employment issues in the next year.
BERR is set to contact around 400,000 small businesses as part of a campaign to make sure they know how to access free help from the Business Link website, www.businesslink.gov.uk.
Employment Relations Minister Pat McFadden said: “For small businesses in particular, every penny counts and they shouldn’t have to put their hands in their pockets unnecessarily.
“By using Business Link as their first port of call, businesses could save on the costs of advice.
“Employers will get a clearer picture of their legal obligations towards employees and save themselves time and money too.”
The Employing People section of www.businesslink.gov.uk is designed to give businesses simple, practical advice and guidance on the full range of employment issues, from taking on staff through to dismissals and redundancies.
The site includes calculators and interactive guides to help businesses understand their legal obligations.
Producing written statements of employment is a significant time burden for employers, with many using external advisers to complete them. If half of employers switched to using the tool we have provided, the saving to business could be as much as £160m.
If a third of affected businesses used the new redundancy statements tool, the saving to business could be as much as £5m.
Major stakeholder organisations and businesses have specifically highlighted to Government the need for better information.
The survey also revealed that 84% of businesses who had used Business Link’s advice on employment issues from its’ website rated its advice as excellent, very good or good.
Interactive features of the site include:
* An employing people checklist
* Downloadable written statements of employment.
* A new redundancy tool, which enables employers to produce redundancy statements.
* An interactive tool to calculate how much holiday staff are entitled to.
* An interactive tool to help with managing new and expectant mothers in the workplace
* The facility to sign up for email alerts about new and changing regulations.
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Airstream Communications