Many people up and down the country will be thinking about putting their New Year’s resolutions into practice. As well as finding a new job, many will also be thinking of starting their own business. Conservatives understand that to create the wealth and job opportunities of the future, we need new businesses.
While it may not appear at first sight the best time to start a business, as someone who started his business in the teeth of the last recession, I know from first hand experience if you can make it now, you can make it any time.
So, it is worrying that new Conservative research showed that more businesses have gone bankrupt during this recession than in any previous recession. Even worse, that the Government has initiated over 3,500 winding up orders against businesses since the recession began. That’s why Conservatives believe it is time for change and why we have announced three new policies to help more small businesses start up in the UK.
First, we would cut the time it takes to start a new business in the UK. Currently, it takes twice as long to start a business here as in the USA, Denmark or Hong Kong. Conservatives want to change that, so we would reduce the number of forms needed to register a new company and move towards a ‘one-click’ registration model.
Second, Conservatives would remove the outdated restrictions that prevent people in social housing from starting up their own business. We would seek to prevent local councils and housing associations from including clauses in tenancy agreements that stop social tenants from reasonably running a business at home.
Third, we will end Labour’s practice of pushing thousands of businesses into bankruptcy over small amounts of unpaid taxes. The majority of businesses that have been forced into insolvency has been initiated by the Government, for owing as little as £750. This is why Conservatives will raise the threshold from £750 to £5,000 before a company can be petitioned by the Crown. This will make life easier for entrepreneurs and save jobs.
All of these changes come on top of our plans to help reduce small company corporation tax to 20p, make small business rate relief automatic in England, and abolish the tax on jobs created by new businesses in the first two years of a Conservative Government.
Conservatives understand businesses create wealth, not government; that’s why it’s time for change.
Comment by Alpesh Patel on January 13, 2010 at 2:48 pm
Mark having started businesses in the UK, the problem is not the headline grabbing time it takes to register a busy. I bring companies from around the world to set up in the UK, and the major problems for them are: VAT bureaucracy (this has been simplified greatly); employee costs (NI in particular). It’s employment forms in particular which are more difficult. Make it easier to employ people by reducing the NI for a start-up; the forms needed; simpler online set-up per employee. There are cases where we will not hire people because of the paperwork and initial costs.
Comment by Peter Weeks on January 13, 2010 at 2:54 pm
Good, but much more is needed. Currently I am helping SME clients where banks will not lend to support viable, long-established, well-run businesses. It’s a scandal that banks are not lending to SMEs in a crisis like this. By 2012, across the country in business parks everywhere, there will be closed-down business premises and high unemployment because of the lack of bank lending today.
Comment by Vince Hill on January 13, 2010 at 3:03 pm
Dear Mark Prisk,
Thank you for your comments. It is refreshing too note the involvement of a Minister from our side of the Commons taking an interest in protecting start up businesses, within whose number I count myself.
I am meeting your colleague, Mark Simmonds, the MP for Boston and Skegness, next week to put forward some radical reconstruction proposals. Having seen your interview in the New Civil Engineer I hope that I will be able to promote some ideas useful to the party for the forthcoming election.
Comment by Ron King on January 13, 2010 at 5:30 pm
I applaud the general approach to making it easier to start, it is ridiculous to have to register over and over again for Co’s House, PAYE, VAT Corporation Tax etc. Do it once! The same goes for filing accounts, let HMRC and Co’s House use the same simplified submission.
You have identified that HMRC is a major enemy of business. It penalises businesses at every opportunity, and when they get into difficulties, pull the plug. Why not send in BUsiness Link to produce a survival plan which HMRC are forced to accept.
We need understanding and help, not draconian penalties.
Comment by Alpesh Patel on January 13, 2010 at 7:33 pm
The UK economy enjoyed growth during fiscal squeezes in the early 1980s and mid-1990s, undermining Brown’s assertion that cutting the deficit too soon would hurt the recovery. The more open the economy, the less impact fiscal policy on aggregate demand and under previous Tory administrations which have cut debt (because they don’t believe in high taxes to spend spend spend) we’ve seen strong economic growth. That’s the real prudence. Treasury and ONS figures show it.
Comment by John Poynton on January 14, 2010 at 9:48 am
Why not give all new unconnected businesses an initial one year tax holiday, and a 50% holiday in the second?
Further why not subsidise intial losses up to a percentage of turnover determined by local levels of unemployment?
Also, why not allow all businesses to retain 1% of payroll deductions by way of an administration fee?
Comment by thomas on January 14, 2010 at 10:05 am
According to the study, the most important tool for small businesses to succeed in 2010 is search engine marketing, while email marketing, public relations and social media cited as crucial for success.
23.8% of all small businesses reported that search engine marketing was the tool most needed for their business to succeed in 2010.
Comment by Kevin Jones on January 14, 2010 at 10:28 am
Thank you for your recent emailed newsletter. The content was very interesting and close to my heart. I am MD of one of the largest Commercial Mortgage brokerages in the UK as well as being Vice Chair of the National Association of Commercial Finance Brokers (NACFB) which in effect acts as the FSA for the commercial market. You state that the Conservatives if elected and let us hope this happens! will refrain from attacking the SME’s over small tax problems. This will obviously assist but I strongly feel that the prime focus must at all costs be on the banks and the total lack of support they are actually giving the SME market. Omega are approached by many companies and sole traders to arrange funding for their business’s, we are actually receiving in excess of 500 new enquieries a month. We have had many situations over the past 12 months where the clearers have messed cour clients about causing them additional stress and financial loss. The most recent is a situation where clients have been offered a commercial mortgage facility via Lloyds, the well known state owned bank, which they duly accepted, paid solicitors fees upfront to the lender and were a week away from completing on the purchase of a bed and breakfast property and business. The lender decided that they did not wish to support this type of business after all and pulled their offer at the last minute. My clients, a husband and wife team were buying the business as a new start as the wife has MS and it offered an opportunity to be able to run a business whilst the husband could look after his wife. They have sold their house and are living in rented accommodation. The loan was only at 33% of the purchase price. They are now in a position of potentially losing their deposit as well as having the stress over the situation. This type of thing has to be stopped especially when we are effectively bailing the anks out. Lloyds Bank are the worst!
Comment by John Poynton on January 14, 2010 at 11:10 am
One more idea. Why not reduce the top rate of Schedule D income tax to 30% for sole traders, increasing it by 1% for each additional partner until ten, when it would be back in line with the other schedules?
Comment by neha on January 15, 2010 at 7:10 am
2010 is the best year to start an entrepreneurship. If anything the past 2 years have taught us its that we need to depend on ourselves to write our paycheck the amount we want it to be. No more dependency on corps for jobs and late working hours be your own boss now
Comment by Jim on January 17, 2010 at 7:28 pm
I have always yearned to be my own boss,being a fully qualified carpenter however along came the recession to put a spanner in the works so now i have to wait and see whether you guys get in at the next election and try and sort this mess out.Maybe then my time will come!
Comment by somaie on January 25, 2010 at 9:40 am
One more idea. Why not reduce the top rate of Schedule D income tax to 30% for sole traders, increasing it by 1% for each additional partner until ten, when it would be back in line with the other schedules?
http://www.onlineuniversalwork.com
Comment by Robert on January 25, 2010 at 1:24 pm
Small business
1. Often we forget the little guy, the SMB, in our discussions of the comings and goings of the Internet marketing industry. Sure there are times like this when a report surfaces talking about their issues and concerns but, for the most part, we like to talk about big brands and how they do the Internet marketing thing well or not so well.
2. The Center for Media Research has released a study by Vertical Response that shows just where many of these ‘Main Street’ players are going with their online dollars. The big winners: e-mail and social media. With only 3.8% of small business folks NOT planning on using e-mail marketing and with social media carrying the perception of being free (which they so rudely discover it is far from free) this should make some in the banner and search crowd a little wary……
Comment by davidbaer on January 27, 2010 at 5:20 am
What I like about small business owners is that they are not afraid to take huge risks and lay it all on the line. But, I agree they do need a lot of help with their marketing. I think having them go the social media and email route is not only the least expensive but its also the most effective. Thanks for the stats!
With Facebook and Twitter being among the leaders of the Social networks, marketing as a small business is being transformed..
Respondents according to the Vertical Response survey appear to need some differentiation with the use of SE marketing and Social media Marketing
Pingback by Two weeks to start a business? Nonsense… « Start Up Donut blog on February 4, 2010 at 11:48 am
[...] later, shadow business minister Martin Prisk MP, in his ‘New year, new start, new business’ Blue Blog on the Conservative Party website, further fuelled the myth, saying: “We would cut the time it [...]
Comment by Start New Business on October 26, 2010 at 5:37 pm
According to the study, the most important tool for small businesses to succeed in 2010 is Start New Business as Online Internet franchising Offers is a burgeoning business because you can start your franchise by planning smartly for it and teaming up with a supportive online platform to boost your user base in the specific region..