FSB LIVERPOOL CITY REGION 2017 MAYORAL ELECTION MANIFESTO

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1 FSB LIVERPOOL CITY REGION 2017 MAYORAL ELECTION MANIFESTO About FSB Established more than 40 years ago, the Federation of Small Businesses (FSB) is a non-profit making and non-party political organisation that is led by our small business members, for our members. In addition to our membership benefits, services including advice, financial expertise and support, FSB is also the UK s leading business campaigner, focused on delivering change which supports smaller businesses to grow and succeed. Our lobbying arm is driven by the work of our Westminster team, which focuses on UK and English policy issues. It both supports and is supported by our work in every region of the UK. Our aim is to help smaller businesses achieve their ambitions. Please note: references to the G12 in this document should not be interpreted as the group s complete endorsement of the manifesto. Each organisation has a range of views that reflect the concerns and priorities of their individual memberships, and their policies do not necessarily support all those of FSB. Supporting businesses Engage with business The G12 is a group of leading Liverpool City Region business organisations including the Federation of Small Businesses, local Chambers of Commerce, Downtown in Business, Institute of Directors, the Liverpool BID Company, Professional Liverpool, Social Enterprise Network and the Women s Organisation. We work closely with the LEP. The G12 s collective organisations, which have been key stakeholders in the devolution consultation process, ensuring that a number of private sector priorities, including devolved business support, were included in the original deal, believe that our engagement with business enables us to be a compelling conduit to the wider private sector for the LEP, the Combined Authority and the individual local authorities. Together, we can provide the appropriate capacity and scale required to create the conditions that enable the private sector to flourish generating wealth, social value and sustainability. The Metro Mayor should commit that offering effective and timely consultation with the G12 will be a priority ahead of the implementation of economic growth plans and pro-enterprise policies. FSB calls on the Metro Mayor to establish the G12 as a constituted Business Advisory Group. Establish a Merseyside Small Business Administration (SBA) FSB is concerned that the current business support offer is too often ineffective and holds back start-up and business growth prospects. A number of significant issues are cited as causing problems, notably the fragmented nature of the offer, with too many schemes in place without enough critical mass to make an effective contribution, and lack of coordination between various schemes. The Metro Mayor should establish a Merseyside Small Business Administration (MSBA) to provide a cohesive business support framework and improve efficiency, by reducing duplication and gaps in funding. It should have the responsibility for reviewing and simplifying the myriad of schemes. 1

2 The MSBA would also go beyond signposting to provide a streamlined finance offer directly alongside export assistance, public procurement opportunities and effective business support. It should have a clear direct reporting line to the Metro Mayor. Develop an effective Growth Hub There is one Growth Hub in every Local Enterprise Partnership (LEP) area and their role is to join up the local and national business support so it is easy for businesses to find the support they need. In Liverpool City Region progress has been slow with delays and lack of clarity as to its operation, including the large number of providers some of which have already pulled out - and the involvement of the Combined Authority. FSB would like to see the Metro Mayor take a proactive role in ensuring the Growth Hub becomes an effective go to place for people wishing to start up and grow their businesses, working with the G12, LEPs and other organisations. Councils and other public sector bodies should not enter into new commercial activities that may undermine the local economy. A full impact assessment should be done beforehand. Build a Northern Powerhouse The Northern Powerhouse is a welcome initiative focusing on maximising the potential of the northern economy but it must work for small and medium sized businesses (those with fewer than 250 employees), which number 5.5 million, representing more than 99% of all businesses in the UK, employing 15.7 million people - 60% of all private sector employment. The combined annual turnover of SMEs is 1.8 trillion, 47% of all private sector turnover in the UK. However, there is a lack of clarity as to the potential of the Northern Powerhouse to support small businesses and economic growth and even uncertainty over its future. The Metro Mayor should work with other Metro Mayors to support the Northern powerhouse focus and ensure it remains a viable initiative. The Metro Mayor should heed the findings of FSB s research to ensure that the initiative prioritises creating new start-ups and small business growth across Liverpool City Region. The Metro Mayor should reach out to business partners beyond the City Region, nationally and internationally. A Liverpool Partners Organisation would work as part of the Northern Powerhouse providing a single voice communicating our strengths and our opportunities, while better understanding threats and perceived weaknesses, promoting Liverpool City Region s offer to investors, suppliers, customers and employees. Increase procurement opportunities for small businesses Research shows that every 1 spent by a participating local authority with local SMEs generated an additional 63p of benefit for their local economy, compared to just 40p generated by large local firms. This is because small firms are more likely to spend with other local businesses, and employ local people. The Metro Mayor should ensure that at least one third of procurement spend by public bodies goes to SMEs. Ensure prompt payment is good business practice Bacs data shows that a total of 27 billion is owed to small businesses. 2

3 The Metro Mayor should create a Liverpool Faster Payment as a version of the voluntary London Living Wage so large businesses can pledge to pay smaller contracts out within 9 days. Support women in business It is estimated that Liverpool City Region (LCR) is missing 1.5 billion in potential revenues due to female under employment, business start-up and growth. There is a need for a more inclusive engagement with female entrepreneurs. The Metro Mayor should ensure that women can access mentoring and support, and are made aware of what is available. Investment for small businesses Reform the Structural Investment Fund FSB welcomes the long-term funding granted to the Metro Mayor and Combined Authority. A significant portion of EU Structural Investment Funds are earmarked to improve SME competiveness. The Mayor should work with the G12 to ensure there is sufficient and effective small business representation to the LEP, in turn consulting with the local business community. This will help to ensure that the funds make a genuine difference in boosting small businesses. The Mayor should act responsibly in ensuring these funds are used to boost enterprise in the region. The Metro Mayor should champion the future of these funds, which are now at risk following the UK s decision to leave the European Union. Create an SME Grant Fund The Regional Growth Fund, an important source of grant support for job-creating investment for smaller firms, is due to finish in March Liverpool City Region has signalled that there will be a new Single Investment Fund, using devolution funding. However, the outline for the City Region s Single Investment Fund has a substantial minimum support figure, and the G12 s view is that the majority of SMEs are not likely to be eligible for this fund. The Single Investment Fund should be utilised to create an environment more conducive to business formation and up-scaling in order to achieve the aims of the LEP s Growth Strategy. The G12 has proposed the creation of an SME grant fund starting at a much lower level of support. The G12 has called on the Combined Authority to provide further financial support for growth-oriented SMEs. A locallymanaged SME grant fund of around 2M a year would improve the assistance for the vast majority of SMEs, who are often not in priority sectors or large supply chains but which are a vital engine of sustained employment and growth for our economy. The Merseyside Jobs and Growth Fund has been put forward as a useful model. Business Rates At present Liverpool City Region collects approximately 190 million in business rates and retains 49%. The Metro Mayor will have power over additional rates supplements, incentives and face business expectations for further support against a backdrop of cuts and rising costs. The Metro Mayor should establish a task force to look at the whole issue of business rates. 3

4 Business rates growth retention FSB urges the Metro Mayor to ensure that income derived from business rates is reinvested back into measures that boost the regional economy such as skills, transport and business support. The Metro Mayor must take a long-term view and recognise that improving conditions that foster local economic growth will in turn lead to increased business rates revenue, and avoid the temptation to use business rates revenue to plug local authority cuts in other areas. Business Rates supplement The Metro Mayor will have the power to increase business rates to fund infrastructure projects through a majority vote of the business representatives on the LEP. FSB is deeply concerned at how these powers could be used and business rates must only be increased if this has the wider support of the business community. The Metro Mayor must consult with small businesses on any proposal and ensure the LEP is reflective of the wider business community to ensure that it has the authority to authorise a rise in rates. Building transport connections for business Boost transport connectivity The Metro Mayor will play a key role in the delivery of local transport links and development of cross regional transport plans. In Liverpool City Region and the North West, which would be the gateway to the Northern Powerhouse, there is a real risk that the positive impact of increasing trade via the superport will be negated by the poor quality of local, and inter-regional, roads and other transport links. The G12 has called for the delivery of critical improvements to transport connectivity including freight access to the Port of Liverpool via rail and road, improved passenger connectivity to Liverpool John Lennon airport and better connectivity to other city regions in the UK, particularly those comprising the Northern Powerhouse and M62 corridor. Improve local road network A poor local road network can lead to unnecessary delays to small business owners and make access to labour, customers and suppliers more difficult. FSB urges the Metro Mayor to champion investment in the local road network and tackle local bottlenecks where congestion extends beyond agreed commuting times. Repairs and improvements must be conducted in consultation with relevant local and national authorities and sufficient notice should be given to the small business community to enable them to plan ahead. We call on the Metro Mayor to develop an integrated transport plan in partnership with neighbouring councils, LEPs, businesses and other agencies. The plan should consider the impact of local road congestion, road maintenance, local public transport, inter-regional and international rail and air connections on business. Bus franchising powers 4

5 The Metro Mayor should use these powers to create a more integrated transport system in the city region. This will help to ensure that small businesses can access their customers, suppliers and employees. In particular, the Metro Mayor should work to ensure that bus connections are coordinated with rail connections to provide a seamless journey for passengers. Smart ticketing The Metro Mayor should introduce smart ticketing schemes to develop a more enhanced transport network that works in the interests of small businesses. Broadband and mobile connectivity Broadband and mobile connections are essential for businesses to function. Too many businesses across Liverpool City Region and the surrounding areas currently experience poor connectivity at their place of work or while working remotely - councils must play their part to remove this barrier and free businesses to operate and grow: Carry out a review of business connectivity and agree actions that; a) support businesses in operating online; and b) increase the number of businesses who have sufficient connectivity to grow. Carry out a review of processes to ensure council policies are not hindering the speed at which roll out can take place e.g. delays in planning decisions etc. Ensure that digital connectivity for businesses is a strategic priority and work to ensure the roll out program reaches business parks. Develop strategic partnerships with providers, local businesses, MPs and LEPs to seek technology neutral solutions and identify all funding sources. Work with mobile providers to improve 4G coverage. Offer connectivity workshops/events in order to highlight the importance and benefits of a digital business strategy. Education and skills for business Further Education FSB calls on the Metro Mayor to act in three particular areas functional skills (e.g. literacy, numeracy and core workplace skills), employability skills and digital skills as well as traditional skills training. Ensuring young people leave school and college equipped with these skills will help give confidence to employers. Alongside high quality provision, the Metro Mayor should ensure effective careers guidance is in place so that young people are aware of the full education, training and employment options open to them, including the option of setting up their own business. Apprenticeship Grant FSB supports the Apprenticeship Grant for year olds. Small businesses report that employability skills, such as teamwork and communication, are important attributes they look for in potential employees. The Metro Mayor must ensure that the Apprenticeship Grant acts as an effective stepping stone in helping a young person to gain an apprenticeship. 5

6 Adult skills Small firms can struggle to find staff with the skills they need. They are more likely to suffer significant impacts as a result of the skills shortfall including increased workload for staff, higher operating costs, and loss of business to competitors. FSB urges the Metro Mayor to consult with businesses to identify skills gaps and work with the Further Education sector to ensure the availability of appropriate courses and qualifications required by business. Renewable Energy The G12 has called for the power of the River Mersey to be leveraged to form a critical element of an energy strategy that enables the city region to be resilient and, ultimately, self-sufficient. Small businesses have a major role to play in the energy industry supply chain, providing products, services, skills and innovative solutions to larger industry. The Metro Mayor can provide support by implementing supply chain action plans for new and emerging energy generation schemes in the River Mersey: Ensuring that all levels of the energy industry supply chain break down contracts into smaller lots wherever practical, avoiding the temptation to aggregate contracts. Ensuring payment within 10 days of receipt. Facilitating and supporting regular training opportunities for smaller suppliers. Housing and planning Strategic planning FSB wishes the Metro Mayor to use these powers to develop a more joined-up strategy to planning and overcome local obstacles to building. The housing challenge in particular is having an impact on employers ability to access employees. Smaller house builders can play an important role in addressing the housing challenge but cannot absorb local Community Infrastructure Levies in the way that larger house builders can. The Metro Mayor should adjust the Community Infrastructure Levy to open up access to smaller house builders. When using enhanced compulsory purchase powers, the Metro Mayor should consult with local small businesses so they are not put at a disadvantage in the face of large scale proposals. FSB would like to see the Metro Mayor using powers associated with Mayoral Development Corporations to develop a joined up strategy to boost urban regeneration and enterprise in particular areas. 6

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