Federation of Small Businesses (FSB) Greater Manchester Manifesto for the Manchester Metro Mayor

Transcription

1 Federation of Small Businesses (FSB) Greater Manchester Manifesto for the Manchester Metro Mayor Produced by the FSB Manchester & North Cheshire region October

2 FSB The FSB (Federation of Small Businesses) has grown since our founding in 1974 into 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. We are member-led, so that we authoritatively protect and champion the interests of around 4,500 members across Greater Manchester and nearly 200,000 across the UK. Our members are either self-employed or owners of small firms, and we are strong in every sector of the economy, in every nation and region England, Scotland, Wales and Northern Ireland. Proud of our independence, we ensure the voice of small business is heard by decisionmakers at every level of government from the local council right through to Brussels. We are a cross-party, non-partisan organisation, and as such we work with elected mayors, councillors, MPs, MEPs, peers and elected representatives from all major political parties and in all parliaments and assemblies. We campaign, but we also bring our entrepreneurial spirit into our work by proposing practical policy changes and being part of the solution. More broadly, we support our members at every stage of their business journey. We provide them with market-leading business services from insurance and business banking through to legal and tax advice. Federation of Small Businesses (FSB) Greater Manchester Manifesto for the Manchester Metro Mayor This document is aimed at policymakers of all parties and candidates standing in the May 2017 Manchester Mayoral Election. It sets out the areas on which FSB Greater Manchester members wants the first Manchester Mayor working with the Greater Manchester Combined Authority (GMCA) to focus their efforts to support Greater Manchester s 104,000 micro and small businesses, and to help them deliver sustainable economic growth and full employment by: Lowering the cost of doing business in the wider region Making Greater Manchester a driver of growth in the North, and the UK Investing in infrastructure to meet business needs Helping Manchester be a leading environment in which to do business The policy proposals presented here will spark sustainable economic growth and job creation, led by our world-beating small businesses. The inaugural Manchester Mayor, regardless of political persuasion, needs to back small business. This manifesto explains #ibacksmallbusiness *This is a living document and it was correct at time of going to press (Nov 2016) 2

3 Foreword It s time to back Manchester s small businesses Micro and small businesses whether long-established or just starting out are a vital part of the Greater Manchester business scene. Not just as drivers for growth, but as the glue that holds communities together. This is relevant to all 10 local authority areas that make-up Greater Manchester. The Greater Manchester economy generates 56 billion of gross value added (GVA) on an annual basis or 56 billion of real value produced in the economy, higher than the GVA of the North East ( 45 billion), West Yorkshire ( 46 billion), Merseyside ( 27 billion), and accounting for nearly 40% of GVA in the North West. It is why Greater Manchester is seen as the natural home of the Northern Powerhouse. The Greater Manchester workforce numbers around 1.4 million people, with the region home to around 105,000 businesses. Of these, 86,000 are classed as micro-businesses (employing fewer than 10); 15,000 are classed as small (10-49 staff); with 3,400 medium sized (50-249), and 600 big businesses (250+). The importance of the SME sector cannot be underestimated, providing the backbone of the Greater Manchester economy which create jobs and growth across the region on which multitudes of families rely for economic prosperity and security. After May s historic election, there will be a clamour for the next Mayor to address many issues once in post. And among the many voices calling for action will be that of the business community, and it will be one of the most crucial for the new Mayor to tune in to quickly, engage with fully, and act upon accordingly. FSB has a part to play in helping the many voices meld to one coherent voice, to speak up for the many, and help foster and deliver a business scene in Greater Manchester that will increase productivity, help businesses whatever their size to thrive, grow, and create employment opportunities for everyone of working age and those approaching it. This manifesto sets out how the new Metro Mayor might achieve that. We call on all candidates to back small businesses. #ibacksmallbusiness Manifesto asks: Helping Manchester be a leading environment in which to do business Education and skills FSB wishes Manchester s Metro Mayor to act in three particular areas functional skills (e.g. literacy, numeracy and core workplace skills), employability skills, and digital skills. Ensuring young people leave school and college equipped with these skills will help give confidence to employers to recruit from younger talent pools. An FSB poll of members in the Manchester & North Cheshire region on attitudes towards skills and training of young adults shows employers have major concerns about the skills 3

4 young people have and whether they arrive equipped to deal with the workplace. The survey asked whether education providers equipped pupils with the necessary workplace skills. Just 4% indicated yes, 61% no, while 35% described it as hit and miss. The same poll went on to ask which skills sets were most lacking when new starters arrived for work. In total, 11% said English, 5% maths, 44% said general work ready skills. The remaining 40% indicated all of the above. The Metro Mayor should consider mandating for the provision of work experience at post-16 education/college level. FSB research carried out in Greater Manchester has shown very few businesses are actively involved in hosting work placements. In March 2016, research showed just 19% of FSB members in Greater Manchester had offered work experience to a school/college aged pupil in the preceding 12 months. The Metro Mayor should implement an online work experience hub where businesses, education providers and students can come together, making work experience placements easy and accessible for all parties. FSB research shows business antipathy is largely based around fear of creating excess amount of paperwork and form filling (55%), and not having a point of contact locally within the education sector (40.5%). FSB would support a Greater Manchester wide scheme to help schools and colleges connect with the local business community who can offer credible work experience placements. The Metro Mayor should support the teaching of work ready skills for older pupils in schools, so leavers understand certain basic skills such as time keeping, workplace mobile phone etiquette, and other important skills not currently taught. Alongside high quality provision, the Metro Mayor should ensure effective careers guidance is in place so young people are aware of the full education, training and employment options open to them, including the option of setting up their own business. Few school children will cite self-employment as a career opportunity, and even fewer education providers teach entrepreneurship as part of their regular curriculum. Schools should be encouraged to do this. Apprenticeships: Apprenticeships in Greater Manchester vary greatly in quality, and employers have difficulty identifying and accessing the right courses for their training needs. The system is also confusing and leaves time-poor businesses struggling to access the system, resulting in poor uptake and means many simply go graduate. There is also massive uncertainty about the apprentice levy, who pays it, and exactly what smaller firms have to pay towards training. To improve the apprentice experience for small business, the Metro Mayor should: Consult with businesses to identify skills gaps and work with the FE sector to ensure the availability of appropriate courses and qualifications required across the area. Look at ways to simplify the apprenticeship system and make it more businesses friendly. Many businesses are befuddled by the current proposition and are put off recruiting an apprentice for that reason. 4

5 Introduce a Trip Advisor style rating system for apprentices so businesses can see how effective each course or training provider is. This would help weed out the less effective and ensure only the best training is delivered, making employers more confident in the apprentice system. This requires an effective, efficient and userfriendly website. Launch a marketing campaign to promote the apprenticeship system from afresh to small business, using plain English. This should include a local area hotline where businesses can seek assistance and guidance, and a GM specific apprenticeship guide offering business a step-by-step process to recruiting apprentices. Apprenticeship Grant FSB supports the Apprenticeship Grant for year olds. Small businesses report that employability skills, such as teamwork and communication, are important attributes 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. 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. The Metro Mayor should 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. Business support: LEPs and 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 s easy for businesses to find the support they need. FSB already works closely with Manchester s Growth Hub, and is in regular contact with the organisation s senior team. However, we would like to see the Metro Mayor take a more proactive role in ensuring the Growth Hub remains an effective and well known go to destination for entrepreneurs wishing to start up and grow their businesses. Many small businesses particularly those already established remain unaware of the services and support offered by the Growth Hub. FSB would also like to see the Greater Manchester LEP be more engaged with the small business community, and ask that the new Metro Mayor pressures the LEP to: 5

6 Ensure small business representation at its board level, thus ensuring the voice of the sector is heard and that small businesses are considered at every stage of LEP decision making. Establish and maintain effective relationships with relevant national and local small business groups. Ensure effective consultation on LEP strategy with local small businesses included over any proposals for a supplementary business rate. Increase small business participation in LEP programmes including Growth Hub, future EU/national Government funded programmes, and LEP procurement opportunities. Back the idea of an LEP small business sub-committee to oversee overall LEP strategy Establish a Greater Manchester Small Business Administration (SBA) It is essential all firms get access to the business support they need. The FSB supports an approach based on a combination of mainstream support for the majority of firms with modest growth ambitions coupled with more focused, bespoke support for the minority with greater growth ambitions. Businesses are too often unclear where to start and are slow to identify the support they need or can access, resulting in low uptake and public money not being spent effectively. As such, the FSB believes there are several key areas where business support must be improved: The Metro Mayor should establish a Greater Manchester Small Business Administration (GMSBA) 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 schemes available. It would also go beyond signposting to provide a streamlined finance offer directly alongside export assistance, public procurement opportunities and effective business support and take a more commercially focused approach. It should have a clear direct reporting line to the Metro Mayor. Robust evaluation mechanisms should be introduced in order to consider the design of future support schemes as well as the effectiveness of existing ones. Investing in infrastructure to meet business needs The 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. However, there is a lack of clarity as to what the Northern Powerhouse is, its potential to support SMEs and economic growth, and even uncertainty over its future. Research conducted among FSB members in Greater Manchester this summer suggests most believe the Northern Powerhouse project is under threat and looking less likely to happen than a year ago. Only nine per cent of small business owners are confident the 6

7 Northern Powerhouse is still on track to be delivered in full, compared to (49%) who believe it is less likely to happen than a year ago. FSB research with members in Greater Manchester has consistently shown significant business support for HS3, ahead of investment in HS2. FSB research suggests topping the wish list of Greater Manchester based business is the trans-pennine tunnel linking Manchester and Yorkshire; 47% believe this is where any investment should be focused as part of Northern Powerhouse spend. HS3 was second (39%), HS2 last with 15%. The Metro Mayor is urged to vocally support the Northern Powerhouse to ensure it remains a viable initiative which has the support of the business community. The Metro Mayor should continue to promote Greater Manchester as the spiritual home of the project, both politically and geographically, ensuring small businesses buy into the project and support it. This will also require urgent remarketing of certain elements of the HS2 & 3 projects so the public understands both schemes are more about capacity issues than that of speed. The Mayor should detail his vision for the Northern Powerhouse as a tangible entity, committing to major transport projects, especially HS3 and a new trans-pennine road route linking east and west as per plans for a trans-pennine tunnel, to promote economies of agglomeration. While FSB supports the purpose of agglomeration, it also considers the Northern Powerhouse must be more than just physical connectivity, such projects often taking years to effect and lack immediacy. FSB believes the creation of a genuinely world beating digital infrastructure across the Northern Powerhouse region would be a quicker, more visible and realistic win under the banner of Northern Powerhouse. Delivery of digital infrastructure is cost effective compared to other infrastructure projects such as road and rail, and can be delivered substantially quicker. It will also facilitate SMEs to be able to communicate and trade with a worldwide market much more easily than at present. The Metro Mayor should support a digital infrastructure project as part of the Northern Powerhouse. Such a project would support the broader aim of significantly boosting the export orientated culture within British businesses, and will also enhance opportunities for inward investment by overseas companies. The Metro Mayor should propose plans for world beating broadband infrastructure, benchmarking against territories such as South Korea, Japan, etc. The Metro Mayor proposals should cover fixed and mobile broadband access, enabling faster start up for new tech enterprises to pave the way for a more diverse economy in the future, as well as fostering the development of world beating skills in future generations. 7

8 Transport in Greater Manchester Looking at transport holistically, Greater Manchester is a mixed bag of both good and bad, with winners and losers across the region in terms of transport infrastructure. FSB research has shown the majority of local authorities in Greater Manchester are decreasing spending on road repairs, at a time when complaints are rising. In juxtaposition, research shows business owners would rather see money spent on creating fit-for-purpose local roads even ahead of big ticket transport projects. The Greater Manchester tram network is also piecemeal, with huge swathes of the region not serviced. Only massive long term investment would fix this. The Metro Mayor should support further investment and expansion of the region s Metrolink network, ensuring a more even and fair spread of the light rail scheme, beginning with borough s that are still without the service and where this forces a heavier reliance on road transport, leading to more congestion. The Metro Mayor should rule out anti-car policies, recognising the majority of small businesses rely on the motorcar for their business model to work successfully, and that the car is the only viable option for the sizeable majority. The Metro Mayor should ensure there is a consistent and fair approach to road repairs across Greater Manchester, ring fencing GMCA transport funding from which repairs can be made in the worst cases as a matter of urgency. The Metro Mayor should not commit to congestion charging until there is proven majority support for such a policy, with the mandate of a referendum, and at a point where a larger, extensive tram system could realistically pick up the slack. The Metro Mayor should ensure Greater Manchester caters for the future of car travel by securing sufficient investment in electric charging stations right across the region, and not just in city centre locations. Bus franchising powers 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. The Metro Mayor should try to ensure that bus connections are coordinated with rail connections to provide a seamless journey for passengers, and that bus timetables are scrutinised for optimal efficiency i.e. empty/overcrowded busses become a thing of the past. 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. 8

9 Local roads 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. Research carried out in Greater Manchester in 2015 revealed small businesses want to see more money spent on local road repairs ahead of major transport infrastructure projects. Further FSB research shows the issue remains a major bug-bear for small firms who believe they don t see value for money in areas like this. Freedom of Information research in 2014/15 revealed 16,000 complaints about potholes from members of the public. The Metro Mayor should champion investment in the local road network, and create a ring fenced fund to tackle hotspots quickly and effectively across Greater Manchester. 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. Making Greater Manchester a driver of growth in the North - and the UK Business rates growth retention Research carried out by the FSB in Greater Manchester has shown while a quarter (26%) of small firms believe devolution will be good for business, 61% were undecided, and 13% thought it would impact negatively. Excessive business rates were identified as the main concern of small business in Greater Manchester in 2015 according to FSB member research. The Metro Mayor must ensure income derived from business rates is reinvested back into measures to 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 at a later date, and help win business buy-in of the system. The Metro Mayor must avoid the temptation to use business rates revenue to plug local authority cuts in other areas. Increase procurement opportunities for small businesses Research shows that every 1 spent by a participating local authority with local SMEs generates 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 encourage local authorities at GMCA level to ensure their procurement strategies explicitly recognise the significant benefits of procuring from 9

10 local small businesses when tendering for goods and services without compromising their legal stipulations. The Metro Mayor should establish best practice procurement strategies for the public sector and set out how they will ensure best practice is followed, and how progress is monitored. The Metro Mayor should ensure the GMCA leads by example to other public sector organisations, for example breaking contracts down into smaller lots wherever practical. Ensure prompt payment is good business practice Late payment costs small businesses billions annually, and in some cases causes business failure, harms jobs, and impedes growth. Small businesses are owed 26.8 billion by larger firms not paying for goods and services on time. FSB has been highlighting the impact of late payment, supply-chain bullying (suppliers are forced by larger firms to cut their prices), retrospective discounting (larger firms forcing a discount of an already agreed price) and paying-to-stay (smaller companies pay larger firms to remain a supplier). National research by FSB shows one in five members have experienced supply chain bullying. The Metro Mayor should put a spotlight on this subject by appealing for larger firms to look after their smaller supplier. For proven cases of serious late payment/supply chain abuse the Metro Mayor might support a public naming and shaming of companies involved. The Metro Mayor should encourage best practice initiatives from the GMCA down, starting by introducing contract clauses which demand Tier 1 suppliers pay their own supply chain in 30 days as local authorities are required to do. The Metro Mayor should also encourage public sector bodies not to endorse bad practices such as invoice discounting/haircutting for faster payment times. Investment Fund FSB welcomes the long term funding granted to the Metro Mayor and Combined Authority. The Metro Mayor should act responsibly in ensuring these funds are used to boost enterprise in the region. Structural Investment Funds A significant portion of EU Structural Investment Funds are earmarked to improve SME competiveness. The Metro Mayor should ensure there is sufficient small business representation on LEP boards and relevant working groups and that these in turn are consulting with the local business community. This will help to ensure that the funds make a genuine difference in boosting small businesses. 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. 10

11 Lowering the cost of doing business in the wider region 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 relevant 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. In a 2015 survey of members in Greater Manchester, 35% cited business rates as their biggest concern. While the changes to the business rates system next April 2017 (600,000 small films will pay no rates at all nationally) will be welcomed by many, increasing rates for those who still pay will be damaging to them and also to how the devolution process is seen. The Metro Mayor must consult with small businesses on any proposal and ensure the relevant LEP is reflective of the wider business community to ensure that it has the authority to authorise a rise in rates. The Metro Mayor must use these powers cautiously so as not to alienate the business community towards devolution. Review parking policies to encourage consumers to shop locally Local businesses are at the heart of a community and play a vital role in ensuring that it continues to thrive. The provision of accessible parking is integral to the success of local shops and businesses. FSB proposes that parking policies are implemented to encourage footfall to boost local shops, and that where best practice has been proven to work in one authority area, other authorities should be asked to consider similar trials. Carry out impact assessment and consultation with businesses prior to making changes to parking provision/charges. This could be capacity, charges, location, restrictions and method of payment collection. This engagement process should be looking to integrate parking policy into the wider economic development strategy for the local area. High streets and town centres should be seen as important local economic hubs that need effective long-term transport strategies. Make it as easy as possible for motorists to pay. This should include providing facilities for accepting cash and electronic payments wherever possible. Work in partnership with local businesses to identify ways of enhancing parking facilities that encourage consumers to shop locally. Take a proportionate and sympathetic approach to enforcement of parking policies. The implementation of parking policies is often more of an issue than the policy itself, with much of the bad feeling stemming from enforcement. 11

12 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. Public services Police and fire services FSB would like to see the police and fire services prioritise the needs of smaller businesses. Cyber-crime in particular can have a particularly devastating effect and FSB would like to see the Metro Mayor work with national agencies so that business gets the protections and response rates it deserves. Like most other police forces, GMP is under-resourced to cope with instances of cyber-crime and the Metro Mayor should be promoting organisations like the Manchester based British Fraud Prevention Partnership (BFPP) to small firms as part of a more holistic approach to the problem. Health and social care FSB would like to see the Metro Mayor use their powers to develop a more integrated health and social care service to the benefit of business owners and their employees. In the commissioning of health and social care services, the Metro Mayor should promote measures to open up the procurement process to small businesses. Compulsory Purchase Powers When using these enhanced 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. Contact details: If you would like to discuss the contents of this manifesto, please call FSB Development Manager Robert Downes on: ; or