Anne Marie Morris, Member of Parliament for Newton Abbot, has, alongside Julian Smith MP, launched an All Party Parliamentary Group on Micro Businesses. One of the first actions the group has taken is to write to the Chancellor setting out taxation measures it believes would help boost micro businesses
Anne Marie said
“The All Party Parliamentary Group on Micro Businesses has been established by me and Julian Smith because we believe there are important distinctions to be drawn between what are commonly called small and medium enterprises and micro businesses. Our APPG aims to give a voice in Parliament to businesses turning over less than £250,000 and which employ up to 5 members of staff. We are interested in the problems facing the sole trader, the recently launched enterprise being run by a couple of people out of a spare room in the house or the tiny business that employs 3 or 4 staff and wants to expand into a bigger organisation.
We already have around 50 Members of the Houses of Parliament, from both the Commons and the Lords, signed up and I anticipate more will do so shortly. At our first meeting, we discussed matters relating to the taxation system that we believe prohibit micro business growth and I have sent a letter to the Chancellor of the Exchequer asking him to consider.
- The introduction of a fuel duty stabiliser and the abandonment of the proposed fuel duty increase
- A reform of business rates in order that exemptions are easier to obtain, turnover is considered as part of the formula as well as property size, and an extension for a further 12 months of the current relief scheme that removes the burden of business rates from many of our micro businesses
- An overhaul of National Insurance in order that the tax is significantly simplified and an extension of the National Insurance Holiday Scheme to allow an existing micro businesses to benefit when they take on 1 more member of staff.
Our micro businesses are not only providing necessary employment and services in our local communities, they are also a fundamental part of our economy and their success or otherwise will determine the extent to which we achieve sustainable prosperity as a nation. An estimated 67% of all businesses in the UK employ between 0 and 4 people and these organisations are responsible for employing approximately 12% of the workforce. They also contribute an estimated 15% of total business turnover in the country. They deserve our full support and I believe the initial measures proposed by the APPG would be of enormous benefit to this most important of sectors. I look forward to taking the APPG from strength to strength and doing everything I can to assist our micro businesses”