We should never underestimate the huge importance of small businesses to the success of the UK as a whole. But that is exactly what the UK Government is in danger of doing, according to the Federation of Small Business. The FSB has urged the Government to invest in small business to safeguard their role in driving the economy. However, there are also investments small businesses themselves can make in order to safeguard their future. One of the most importing is making sure they are fully covered in public liability insurance.
At the last Conservative Party conference, promises were made about encouraging the growth of SMEs which focused on cutting red tape and on various initiatives aimed at encouraging businesses to take on more staff. But the FSB has claimed that these measures do not go far enough, and that the Government should be bolder if they are to truly make a difference.
FSB national chairman John Walker said: “If unemployment was lower and consumer spending higher, government policies to grow the economy might work. But they are out of touch with reality. With economic growth sluggish at best, spending on the high street low and unemployment high, the government needs to ratchet up its growth agenda and send a clear signal to the business community that it will support them.
“Small firms lack confidence about their future prospects but they also hold the key to recovery. Kick-starting demand and further incentivising job creation would give small firms a fighting chance to return to growth. But as it stands, government policies are merely scratching the surface.”
Investment priorities
Getting covered with employers liability insurance may not be considered the first priority for many small businesses, but the ramifications of not being covered could threaten the life of the business entirely. So it’s clearly in the interests of small businesses to get fully covered, especially in this tough economic climate.
No one is denying that Government help, be that in the form of National Insurance Contributions holidays or cutting VAT in certain sectors, could be of tremendous benefit to small firms. But investments SMEs can make in themselves may also help in the longer term. These investments, in insurance for example, need not be large with cheap public liability insurance easily found online, but could make all the difference if a business is unlucky enough to be faced with a claim.
