Sajid Javid has a message for small businesses » SMEInsider

Sajid Javid has a message for small businesses

sajid javid

In his first speech since being appointed Business Secretary, Sajid Javid was expected to address the future of small businesses, as well as outlining a new Enterprise Bill.

In the speech delivered on Tuesday, the main focus of Javid’s address was to expected to be cutting down the amount of red tape affecting small businesses.

This announcement came at a critical time for small businesses. Last month, SME Insider reported that small businesses could have added nearly £5bn to the economy if not for red tape costing employers valuable time and effort.

According to the Telegraph, Javid is set to tackle a number of key issues plaguing SMEs in the future. Javid gave his speech in his hometown of Bristol. Javid lived above his parent’s clothes shop during his childhood in the city.

‘‘Small businesses are Britain’s engine room and the success of our whole economy is built on the hard work and determination of the people who run and work for them. We will sweep away burdensome red tape… [and] get heavy handed regulators off firms’ backs,’’ Javid is likely to say.

The Enterprise Bill is designed to simplify existing Primary Authority provisions. What this will mean for SMEs is that when a small business owner goes to a local council for advice on regulation, the advice that they receive must be respected by other local councils. This means that small business will run into less red tape when doing business in other areas.

‘‘As Business Secretary I will always back them and, in my determination to get the job done, one of my first steps will be to bring forward an Enterprise Bill that helps them to succeed and create jobs,’’ continued Javid.

  • I would love to see meaningful measures such as financial incentives to SME’s to increase employment. Things such as sub-contracting HR support for professional interviewing procedures are expensive for SME’s and fiscal measures could be put in place to off-set such costs.
    Derek Boyd, NMI

    • Stephen Burnett

      Derek Boyd makes a very good point. Employment rules are now so complex that we have to use an external HR supplier. Either help us by offsetting the cost, or simplify the regulations so that they can be managed in-house (I’d prefer the latter.)

    • You make a great point Derek. SMEs are growing at an incredible rate and represent a fantastic opportunity to improve employment in the UK. Red Tape is a huge issue for SMEs right now, so hopefully Javid will tackle issues such as expensive interviewing procedures.

    • Richard J Francis

      In some countries – SME’s get significant reductions in HR law (HR-‘lite’ if you will). The need for this in the UK was robustly fed back to Vince Cable via the FSB & the Chambers in 2010/2011 – but little (if anything) was done. Whilst they are about it – simplify tax/N.I rules as well – something that’s been ‘on the table’ for years and years.

  • Roy Gibson

    Sadly the main driver for industrial SMEs like ourselves is having some large business at the top of the food chain, which is why there are so many more manufacturing SMEs in Germany than here. Its such a shame that Thatcher and Blair just let these go so easily. All we can hope for today is genuine tax breaks for manufacturing investment (very unlikely) so not impressed sorry

    • You make a great point Derek. SMEs are growing at an incredible rate and represent a fantastic opportunity to improve employment in the UK. Red Tape is a huge issue for SMEs right now, so hopefully Javid will tackle issues such as expensive interviewing procedures.

  • John Bernard West

    Small businesses like mine have been severally damaged by the run-down of the BBC (and ITV) in the Midlands. This was to save money to pay for the BBC World Service and give more work to private film companies in and around Soho. This Governments cuts to the BBC license fee
    will only do more damage.