New Government proposals will benefit small businesses across Yorkshire, according to a local tax and accountancy specialist.
Will Swift, who runs TaxAssist Accountants in Horsforth, said:
“The Small Business, Enterprise and Employment Bill, currently going through Parliament, shows the Government is at last recognising the vital importance of small businesses to the local economy.
“There will be some positive developments for small business owners, if the Bill does become law.
“It will give them crucial clarification on zero-hour contracts, cut red tape and make it much more difficult for company owners to take assets out of a failing business and carry on trading as a new company.
“Many small businesses are left stranded by these so-called ‘pre-pack’ companies, which leave major debts with the small businesses who supply them.
“New rules on bank lending will also be very welcome.
“The Bill will force banks that have turned down a loan request, to advise small business owners on other lenders they could try and to share customer data with alternative lenders.
“This would be a very positive step for many local businesses.”
“But I would have liked to see more to address one of the major issues faced by small business owners today – late payment by large companies.
“There is an estimated £40 billion of debt being carried by small businesses for their big clients across the UK and all the Bill says, is that those companies will have to go public in their annual report, on how long they take to pay suppliers. That’s hardly going to stem the tide.”