Wednesday 3 October 2018

Government Announces New Measures to Help SMEs

The Business Secretary Greg Clark has announced a series of new measures to back businesses and entrepreneurs, support workers and ensure every part of the country benefits from the government’s modern Industrial Strategy.

More Protection for Small Businesses

The government will strengthen the Prompt Payment Code with a new tough and transparent compliance regime.

A call for evidence will be published later this week which will consider the best way to ensure company boards put in place responsible payment practices throughout their supply chain, including whether all company boards should give one of their non-executive directors specific responsibilities for the company’s prompt payment performance.

The Small Business Commissioner will join the Prompt Payment Code’s Compliance Board to support his role in tackling late payment.

Reacting to the plans the Federation of Small Businesses (FSB) National Chairman Mike Cherry said “Late payment is the biggest challenge affecting small businesses and it is good to see the Government getting serious about this issue.

“The voluntary Prompt Payment Code is not working when it allows signatories like Carillion to pay on terms of over 120 days, so we want to see a new tough and transparent compliance regime being proposed. Involving the Small Business Commissioner Paul Uppal with the Code is also right as that shows a more joined-up approach to this difficult issue.

“Further, it is a positive step that central government will set an example – paying 90% of undisputed invoices from small and medium-sized businesses within five days.”

Tipping

The government has announced plans to ensure that tips left for workers will go to them in full.

While most employers act in good faith, in some sectors evidence points towards poor tipping practices, including excessive deductions being made from tips left by customers.

New legislation, to be introduced at the earliest opportunity, will set out that tips must go to the workers providing the service.

This legislation will ensure workers get the tips they deserve and give consumers reassurance that the money they leave in good faith to reward good service is going to the staff, as they intended – ensuring that hard work is rewarded.

Proposals to Help Parents and Carers in the Workforce

While many companies are increasingly embracing flexible working and the benefits it brings, some employees face barriers in raising this issue with their employers.

The government will consider creating a duty for employers to consider whether a job can be done flexibly, and make that clear when advertising.

Greater Transparency on Parental Pay

The government will consult on requiring employers with more than 250 staff to publish their parental leave and pay policies, so job applicants can make informed decisions about whether they can combine the role with caring for their family.

While many employers go further than the legal minimum for parental leave and pay, very few publish their policies openly. Applicants must ask prospective employers what the position is which many are reluctant to do for fear of discrimination.

Progress Towards a Local Industrial Strategy for the West Midlands

In consultation with regional partners, the local Industrial Strategy for the West Midlands will harness its distinctive strengths to unlock greater growth and earning power across the region’s cities and places. 

The West Midlands Local Industrial Strategy will provide a long-term plan for alignment of local and national decision making to increase productivity and deliver an economy that works for all. This will include how the automotive and wider transport cluster, the life science cluster, and their associated supply chains and infrastructure, will drive the UK’s response to the Future of Mobility Grand Challenge and the AI and Data Grand Challenge.

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