Recovery and Renewal A Mission to support the 1.1million self-employed and small businesses in London - Federation of Small ...
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Recovery and Renewal A Mission to support the 1.1million self- employed and small businesses in London This document was produced by FSB London in February 2021 in the run up to the Mayoral and London Assembly elections
FSB London
Foreword
The Federation of Small Businesses (FSB) is the UK’s leading
business organisation.
Our mission is to create the best environment for businesses to
start up and thrive in. Our success will drive the economy and
create jobs.
Proud of our independence, we ensure that the voice of small business is heard by
decision-makers at every level of Government. We are a cross-party, non-partisan
organisation, we campaign, but we also bring our entrepreneurial spirit into our work by
proposing practical policy changes and being part of the solution.
This document was initially produced in the run up to the Covid-19 pandemic. Now, the
key recommendations hold truer than ever – and the words ‘backbone of the economy’ to
describe London’s 1.083 million self-employed, micro and small businesses1 needs to
be heard.
That solid ‘backbone’ has been badly damaged as a result of the crisis but the army of
businesses that make up 99.3 per cent of all private sector businesses in the capital,
can recover with the right support.
The Election of Mayor and London Assembly will be held when it is safe to do so and we
are calling on leaders to step forward to support the real-life entrepreneurs who have
remained stoic in the face of adversity, many not receiving any Government support, and
use their positions to fight for small businesses who we know will lead the recovery and
reinvigorate the economy.
Michael Lassman Rowena Howie
London Regional Chair London Policy Representative
Federation of Small Businesses Federation of Small Businesses
1
www.gov.uk/government/statistics/business-population-estimates-2019
2
fsb.org.uk
Key recommendations for a new mayoralty
To reach a target of 20% Skills vouchers available for all small
more businesses getting businesses in London to access either Export,
access to affordable Digital Marketing and Sales skills support.
gigabit broadband
connections by the end
of 2022.
Promotion of alternative forms of finance
as small firms with debt (particularly from
minority backgrounds) struggle to recover
Driving relations to support the High Street
from the pandemic.
with the development of a ‘Landlord/Tenant
Board’ - with the aim of sharing best practice
to create innovative support mechanisms such
as turnover based rent, rent step-ups (low to
start, then increasing) and using empty space
for local business pop-ups at affordable prices.
33 per cent of all GLA (and GLA Group and Provide strong resources through the
family2) contracts to go to self-employed, London Business Hub for businesses to
micro and small businesses by 2025 protect against cyber and physical crimes.
- A procurement system that enables
business owners from small firms’ equal Reform the current environmental and
opportunities to their larger counterparts – congestion pricing systems in London as
particularly BAME owned businesses. they are no longer fit for purpose.
Part-funded apprenticeships by the The London Business
Mayor that support small businesses – Hub to focus on mental
up to the value of £500 per apprentice. Health and wellbeing
support - connect
the mental health and
wellbeing small business
sector with public sector
opportunities via the NHS
Focus on a safe tourism-led recovery – social prescribing service.
through greater resources for London &
Partners to promote London across the world Greater public awareness of the London
– and lobby the Treasury to reintroduce tax- Business Hub through a strong marketing
free shopping for International visitors. campaign.
2
GLA Group - Greater London Authority, Transport for London, Mayor’s Office for Policing and Crime, Old Oak and Park Royal Development
Corporation, The London Fire Commissioner, London Legacy Development Corporation, London & Partners, London Resilience Partnership,
London Enterprise Action Partnership,
3
FSB London
Direct business support to overcome inherent
challenges which have been manifested through
the pandemic
Small businesses need support in these extremely challenging times, with around 50,000
businesses at the beginning of 2021 fearing they could go out of business without more
support.
As part of a recovery and resilience plan, we ask the Mayor to:
• Support the provision of a (free-to-use) London digital service (via the London Business
Hub) for Micro and Small Businesses (MSBs) through which they:
- can sell their goods and services, from the High Street to the High Seas.
- can be provided with more support to acquire digital skills. It has been evident
during Covid-19 that many SMEs have struggled to take advantage of opportunities
that have been available to them for survival via the digital space, due to their lack
of knowledge, experience and skills in the area.
- can easily access high quality international trade expertise for exporting
opportunities.
• Make the procurement process easier and champion best practice in procurement by
meeting a target of 33 per cent of all contracts to go to MSBs by 2025 through greater
disaggregation of contracts.
fsb.org.uk
• Create a business environment in the capital where we look to end the scourge of
late payment once and for all – leading from the front at the GLA and through Local
Councils.
• Enable the owners of small firms to achieve equal access to high quality and affordable
family care through better support; so that small businesses do not have to choose
between their family and their business.
• Work with London & Partners and Visit England to ensure London is at the heart of a
tourism-focussed recovery once it is safe to do so.
• Lobby to re-introduce tax-free shopping for international visitors.
Venn Diagram of business support
The business support offering in London must be small business focussed and give
far greater weight and resources to the London Business Hub and centre on three key
themes of support - Liveability, Skills and Finance.
ty S
ki
i
bil
• Targeted Health &
lls
• Skills Vouchers to
Wellbeing support Getting
a
London support self-employed
• Safe online and
Live
Connected: and small businesses in
physical Environment for • High Speed key areas of Digitalisation,
businesses Broadband for all
businesses Exporting and Marketing
• Transport Modes that are
• Apprenticeships
accessible for all businesses
Matched Funding
• Affordable housing
London
Supporting
London’s
Business Enhancing
London’s
Economies: Hub Diversity:
• High Streets focus: • Supporting
Commercial Rent Minoritised
and Business Rates Businesses
support in London • Winning
• A Tourism & procurement
Hospitality Recovery contracts
• Alternative forms of Finance promoted
Fina
• Lending as A Force For Good Growth
• Support for paying Back Covid-Loans
nc
e
5
FSB London
Providing the space for small businesses to flourish
and keep our High Streets active
The affordability and availability of business space and residential
space for employees is a challenge that has been heightened
during the pandemic.
Enabling small businesses to create 21st Century high streets is a challenge that the
Mayor, Local Authorities and all sizes of businesses must meet.
We ask the Mayor to:
• Ensure commercial space affordability through maintaining rates reasonable as
businesses return to more central London-based work (ensuring landlords do not raise
rates unreasonably to make up for lost capacity during Covid-19).
• Ensure High street regeneration is closely tied to landlord/tenant relations - offering
more appropriate lease terms, turnover based rent, rent step-ups (low to start, then
increasing) and using empty space for local business popups at affordable prices.
• Work with local planning authorities to ensure that we see an increase, rather than
a decrease, of industrial, workshop, workroom and studio accommodation across
London.
• Redefine ‘Affordable Housing’ based on earnings - which is crucial for firms looking to
live and recruit in London which has the highest property values.
3
The availability and affordability of property was the key business issue facing small firms going into the
2020 cancelled Election - with over half (53 per cent) stating that Mayoral lobbying on business rates reform
to reduce overhead costs and 46 per cent calling for an increase in the availability of commercial space to give
opportunities to grow
6
fsb.org.uk
Creating more jobs in small businesses to boost
the recovery
People make small businesses. The people that run them and the people that are
employed in them devote their skills to create economic growth.
Investing in and accessing the right skills will support small businesses looking to recover
and create further jobs in the capital – particularly those who face the threat of long-term
unemployment.
Almost one in four (24 per cent) businesses
said that they want to take on an
Apprentice in 2021, and almost 7 in 10 (69
per cent) said they want to invest in Skills
for either them or their employees in 2021.4
We ask the Mayor to:
• Put in place a staggered (part-funded) financial incentive for micro businesses in the
capital looking to take on an apprentice - with the Government putting in 75 per cent and
the Mayor topping up with 25 per cent. For apprentices aged 16-24 the payment will be
£2000 by Government and £500 from the Mayor of London and for apprentices aged 25
and over the payment will be £1,500 by Government and £375 by the Mayor.
• Producing clearer signposting of pathway services through the London Business Hub
to provide funding, training and career development support to encourage long-term
unemployed people to take up employment with small and micro businesses.
• Making skills vouchers readily available for all small businesses in London to cover key small
business areas around Digital Marketing, Sales and/or topping up Export skills support.
70 per cent of London small
businesses are calling for extra
support with digital marketing, sales
and customer service skills support.5
4
FSB Survey on Skills and Apprenticeships – January 2021
5
FSB Survey on Skills and Apprenticeships – January 2021
7
FSB London
Building the right environmentally-friendly
infrastructure for businesses to thrive in
Small business owners want to do the right thing. Our members care about tackling air
pollution, access to affordable public transport and want to be more environmentally
focused. At the same time we must have a 21st Century infrastructure that competes with
our international counterparts.
Small businesses are often at the heart of communities and value social good as one
of the most important parts of being in business. They are the most underrated and
overlooked agents for change. Helping small businesses understand how they can help
achieve net zero or other long-term targets will create a ripple effect in society where
small business interconnectedness could deliver real change.
We ask the Mayor on Transport infrastructure to:
• Make London a world leader on the environment, and that you embark upon an
extensive awareness programme of what that entails for small businesses – through
actively promoting sustainable, supportive and circular MSBs, in line with the UN
Sustainable Development Goals, and Conference of the Parties (COP) 26, which the
UK will be hosting later in 2021.
1 in 5 small businesses are not aware of the changes
to the ULEZ coming in October 2021.
• Reinstate the van scrappage and heavy vehicle schemes to allow more small
businesses the opportunity to invest in greener, cleaner vehicles. A ‘period
of grace’ to enable those with businesses dependent on diesel vehicles
to explore and seek funding for ULEZ compliant vehicles after the ULEZ
extension in October 2021.
8fsb.org.uk
• Use the financial penalties of those who fall foul of the ULEZ to be put into a ULEZ
bank account (for a two-year period) which can be used to purchase a compliant
vehicle.
• Reduce the London Congestion Charge back to £11.50 with immediate effect.
• Lay the groundwork to scrapping the Congestion Charge, LEZ and ULEZ and other
charging mechanisms and replace with a fully consulted-on demand managed road
pricing scheme which is dependent on usage of the roads, the time of journey and the
environmental quality of the vehicle.
71 per cent of small
businesses consider
London’s public transport
system as important to
them/their customers.
• Continued investment in the public transport network – consider making it cheaper for
users by bringing in lower than inflation increases and reduced fees to improve the
night time economy.
• Introduce new public transport strategies to respond to the expected changes in
commuter working patterns in a post Covid-19 London.
• Activate a public information programme designed to increase confidence in London’s
public transport in these Covid-19 times and post pandemic.
• Ensure key public transport infrastructure projects are signed off and delivered on
time. The Elizabeth Line, and extensions to the Northern and Bakerloo line will each
bring significant benefits to small firms and the people they employ.
• Constructively engage with HM Treasury to lobby for a fair-funded Crossrail 2 project.6
• Continue to lobby Government and other key stakeholders to support the repair of
Bridge infrastructure across London.
6
FSB have concerns over the funding of Crossrail 2, as Business Rate Supplements from
Crossrail 1 are still ongoing meaning there are adverse costs to London businesses.
9• Support road investment in the capital through delivery of the Lower Thames Crossing
and the Silvertown Tunnel, financed through charging for new infrastructure and not
existing infrastructure such as the Blackwall Tunnel.
• Ensure a continued growth in the numbers of superfast charging points for electric
vehicles (EV) are rolled out across the city. Small businesses require confidence in
logistics support for going green.
• Simplify the EV charging rates across London and to make it cheaper.
• Ensure adequate levels of road vehicle parking to support efficient kerb-side deliveries
and servicing; cross Council standardised usage for disabled people.
• Create a coherent parking strategy across the London region which incorporates a
one point of contact charging platform and an agreed suite of parking fees.
• Recognise that Business Parking Permits should be an essential small business need
even with the prevalence of active travel. Active travel is currently important to the
survival of many small businesses through the pandemic but continued positive
lifestyle change for employees and customers alike may need to be encouraged once
restrictions end.
• Provide grant funding or a voucher scheme to enable small businesses (employer and
employees) to buy into micromobility and active travel options along similar lines to the
‘Cycle to Work’ scheme.
• Increase the reach of affordable e-cargo bike options for small businesses.
10fsb.org.uk
79 per cent of small businesses
consider the adoption of a
green policy is important.
On technical and energy infrastructure, we ask the Mayor to:
• To reach a target of 20% more businesses getting access to affordable gigabit
broadband connections by the end of 2022.
• Choose the right ‘full fibre’ infrastructure partners to deliver a 1 gigabit (Gbps) network
to homes/businesses at prices that are fair and affordable by 2025.
• Push for a relaunch of the Gigabit Broadband Voucher Scheme and promote via the
London Business Hub and business support partners.
22 per cent of small businesses
are still without superfast fibre
broadband available in the
London area.
• Focus on improving connectivity for businesses in London areas within boroughs to
eliminate mobile ‘not spots’ and make the reporting of connectivity issues easier by
introducing a portal on the London Business Hub which records down time statistics.
• Make an assessment of the benefits of further mobile telephony and 5th Generation
technology wireless technology usage across the capital.
• Undertake an ‘Energy Supply Audit’ and a ‘waste recycling audit’ in London and make
sure we will have the infrastructure and supply to meet new demand.
11FSB London
Creating the most diverse and healthy workforce
of the future
London is characterised by its glorious diversity. Many disadvantaged groups have been
negatively affected throughout the pandemic. We must be as inclusive in everything
we do and the Mayor must create the environment for businesses to see diversity and
inclusion as integral to business recovery.
We ask the Mayor to:
• Raise awareness, provide resources and carefully monitor how under-represented
groups, with the protected characteristics7, can access finance, procurement
opportunities, training and general business support as we move back into recovery
and renewal.
• Devise a proactive marketing and outreach strategy via the London Business Hub to
target diverse business owner groups (most notably BAME, Disabled, LGBTQ+ and
Women owned businesses). The Mayor must commit an appropriate sized budget to
deliver this.
Health and Wellbeing
Health and wellbeing amongst small business owners has taken a significant hit as a result
of the crisis. The mental, physical and financial health of the citizens of London must be at
the forefront of Mayoral and Assembly thinking.
97 per cent of small businesses
said that wellbeing is ‘important’
to the success of their business8.
7
www.equalityhumanrights.com/en/equality-act/protected-characteristics
8
FSB Survey for the Mayoral election – Oct-Dec 2019
12fsb.org.uk
We ask the Mayor to:
• Utilise the London Business Hub as a portal to connect the mental health and
wellbeing small business sector with public sector opportunities via the NHS social
prescribing service to support the increase in demand on public sector health services
in the current crisis and post pandemic.
• Make ‘workplace wellbeing’ available to all. Ensure all small businesses across the
London area can easily access no cost/low cost wellbeing solutions/strategies.
• Give self-employed Londoners free access to fortnightly wellbeing updates on the
London Business Hub – through regular blogs, seminars and potential 1:1 experts.
• Enable the owners of small firms to achieve equal access to high quality and affordable
family care through better support; so that small businesses do not have to choose
between their family and their business.
13FSB London
Small Businesses are at the heart of communities.
Protecting small businesses will help local
neighbourhoods thrive
Whether a visible local community asset or contributing from behind the scenes, small
business success plays an integral role in the wellbeing of a local area, it’s perception of
itself and by others.
Small businesses and the Police can work hand in hand to reduce the threats on our
streets through close collaboration.
We ask the Mayor to:
• Require new community policing initiatives to build relationships with small businesses
in the community.
• Increase the level of policing as this will provide more support and security for small
businesses. This will ease the disruptive, fearful and financial cost of crime that has a
lasting impact not just on local businesses but on London as a whole.9
• Commit more funding to support business crime reduction via local authority
community safety teams and/or extend the number of BCRPs that operate across
London.
• Produce and monitor a biannual Business Crime Strategy.
• Continue supporting the work of the London Digital Security Centre (LDSC) and
promote practical methods of dealing with the risk of cybercrime.
9
FSB member feedback has shown a significant rise in the number of van related thefts, which has identified a
need for secure publicly owned space to park to keep trades vehicles safe overnight.
14fsb.org.uk
15About FSB
As experts in business, FSB offers members a wide range of vital business services, including advice,
financial expertise, support and a powerful voice in Government. Its aim is to help smaller businesses
achieve their ambitions. More information is available at www.fsb.org.uk
fsb.org.uk
facebook.com/federationofsmallbusinesses
@FSBGtrLondon
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