What do you want from the next government?
By Kate Pritchard, published 139 days ago in Leadership.
Following yesterday’s television election debate between Gordon Brown, David Cameron and Nick Clegg, which was watched by 9.9 million people at its peak and sparked a total of 184,396 tweets during the broadcast, we asked entrepreneurs what they want from the next British government.
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“I’m in the process of starting my fourth business. In the last three, the government has been far more of a hindrance than a help,” comments Roger Butterworth, founder of online department store Zutux.com. “A one-year national insurance holiday for new employees, or even a short holiday from all income taxes if you hire a person who was unemployed, would do wonders. I was very disappointed to see that the Conservatives are just proposing a commission on tax simplification rather than taking a stance on a flat rate of income tax (including NI). It’s such an obvious simplification, I can’t understand why only the UKIP is proposing it. It would get my vote if it was proposed by a party with a hope of winning the election.”
Mark Needham, chairman of consumer electronics firm Widget UK, wants to see the return of the Enterprise Allowance. “This was a very rare thing – a government programme for startups which actually worked. It helped me start Widget by paying £40 per week into the company bank account for the first two years. Some weeks, that was the only money which came in.”
James Minter of private members’ bar Adam Street champions the EIS scheme: “Labour cut this benefit and it would be a small but incredibly valuable move for the percentage rebate to be increased as well as the total figure that individuals were allowed to put into these schemes. Second, all startups should be exempt tax for their first year. Third, the government must do away with all this red tape. Small firms should be protected from laws that were designed by trades unions for large companies.”
Great Guns Marketing founder Liz Jackson wants “a strong salesman, like Barack Obama" at the helm. “What we are missing a present is a leader who can promote British businesses to the rest of the world,” she says.
Bhanu Choudhrie, who directs investment strategy at £56m-turnover C&C Alpha Group, wants to see dramatic moves to reduce the national budget deficit. “Public sector spending will have to be cut,” he says. “The only way to achieve that, without seriously damaging vital services, will be through a reduction in the number of middle managers and the amount of bureaucracy within the public sector. We also need to see the banks lending again. Whichever party is in power after the election, they will need to put much more pressure on the banks.”
Marcus Simmons, managing director of accommodation and tourism directory iknow-uk, also wants better access to funds. “As an online business, we have very few assets and a relatively small balance sheet, so when all the traditional lending criteria is applied, we consistently fail to be able to borrow what we need. There should be a radical expansion of government-backed security for business loans, with special regard to entrepreneurialism, job and wealth creation. The tolerance for failure on this scheme should be higher, as many entrepreneurs have to put their personal assets such as their homes on the line to secure funds for their businesses.”
Jos White, co-founder of Notion Capital, wants to see the public-sector tender process improved for small businesses. “Currently, the UK government represents half the buying power of the UK and has effectively been an 'out of bounds' customer to small, innovative businesses. For Labour to offer just an extra 15 per cent of central government contracts to small and medium sized businesses is not enough. The Tory manifesto plans to open up government procurement to smaller businesses, breaking up IT projects into smaller projects to make it easier for smaller fast-growth businesses to bid and win the work.”
“The next prime minister needs to think like a businessman,” says Rik Hellewell, founder of professional oven-valeting franchise network Ovenu: “The next party to take power needs to investigate the concept of making profit instead of getting into debt. If my head office was costing me a fortune to run, I wouldn’t just move a few departments to the suburbs. The Houses of Parliament is a ridiculous expense and is money down the drain – time to move to smaller, less expensive premises.”
What do you think? Join the debate by filling in the "Leave a comment" box below.
8 comments.
John Cheney, CEO, Workbooks.com 136 days ago.
The government must fundamentally improve tax breaks. Addressing the Enterprise Investment Scheme and removing the limitations both small businesses and individuals face when raising funds would further encourage the growing network of Angels who are keen to invest in start-ups. In addition, allowing small businesses to get a refund from the government on investments made in R&D would make way for more investment and innovation. Furthermore, addressing new ways to generate more staff is critical in times like this. Creating incentives supporting hiring would therefore prove most effective.
Natalie Feerick 136 days ago.
Until I read UKIP's manifesto I thought I was the only person in the country who could see the benefits of a flat rate of Income Tax! I am pleased Roger Butterworth also sees its merits. However, UKIP has other policies which I cannot support, and this is the problem with all the parties - for every good idea they generate they offer up two dud ones!
Lisa Wynn, Director and Master Certified Coach, Corporate Potential 136 days ago.
I would love to see a simpler and less onerous tax system that left small businesses free to invest in their own development. Corporate Social Responsibility (CSR) for instance holds great opportunities for businesses to build their employee brand by donating to - or giving time and practical support to - important causes linked with their own industry. A lower tax burden with incentives to develop CSR work would be fantastic for SMEs.
Matt Gordon, MD, Limited Space 135 days ago.
As a start up business under a Labour government we've at times been burdened by the red tape, paper work and complicated tax protocols. We'll support a government with policies that simplify this process and make the process of starting and running a new business easier. A simplification of business taxes and a reduction in corporation tax and national insurance will assist in creating a new generation of small business. Enterprise can generate a sustainable recovery in our economy and this requires commitment and support from government.
Tim Duffy 135 days ago.
Clear tax policies to incentivise innovation, risk taking, investment and less petty red tape. We need to create a Silicon Valley ethos to creat new technology start-ups, rewarding risk, spawning start-ups that can scale globally, those are the future growth drivers in our economy. Keeping capital gains tax low in order to incentivise risk taking is essential, bring back taper relief that worked well. We don't need Government venture funds, we need government to get out of the way and make sure there is a very attractive tax climate for VC investors, private investors and entrepreneurs.
Jasveer Singh Bal 134 days ago.
Hello! We all want immigration to support its fundamental values of immigration, but that cannot happen if we do not exercise immigration properly. I propose a 20 year break from immigration to the UK, or highly selective immigration reforms would be good for the country. We can't have it all too fast. (The positive aspects of immigration)
Joel Hagan, founder and CEO, Onzo 134 days ago.
It's not the time for lowering the 50 % rate for the top tax band, but for more generous incentives for innovation, to ensure that private enterprise keeps pace with social enterprise, such as extending the Enterprise Management Incentive schemes, which provide tax incentives on share options. I also think that the minimum wage should not stand in the way of unpaid internships, as they enable the young unemployed to get a foot on the career development ladder and allow businesses, particularly smaller ones, to access untapped talent at lower cost.
Drew Rogers, Director, Renew Fitness Retreat 132 days ago.
As the owner of 2 businesses I sometimes despair at the paperwork and red tape that I encounter on a regular basis. SMEs are the backbone of our country and the government needs to help us effectively (funding, NI and pensions are hot topics that spring to mind) and realise that they need us as much as we need them. And please let's have a government who don't keep changing the rules on a whim!