THE future of the UK’s small business population is crucial to the success of the UK economy, according to a leading business organisation.

The Confederation of British Industry( CBI) says it is working closely with the new Government to push for policies that will help such vital companies grow and compete.

Sarah Glendinning, assistant regional director at the North-East CBI, said a significant number of small businesses are in the North-East.

She pointed out that the structure of the new Government had implications for the way policy will develop. 

Based on the Conservative manifesto and early speeches from Ministers, she identified some key areas the small business community should be aware of. 

“The Government has promised an in-out EU referendum before the end of 2017, she said.

“For small business, the ability to import and export to the largest single market, utilise the free movement of labour and benefit from the upcoming deal between the US and EU are crucial benefits of membership.

“We will be campaigning for an ambitious, achievable reform agenda that will make both the UK and Europe more competitive and prosperous for all.” 

Another problem that needed addressing was late payments, she said.

“Small businesses are owed an average of £30,000 in late payment and the Government will be taking more action to address the issue. 

“It has promised to further strengthen the Prompt Payment Code and set up a Small Business Conciliation Service (SBCS) where firms will be able to bring claims of late payment.” 

The CBI is also calling for a review into the clunky and outdated business rates system that it says is holding our high streets back.

 “The Government has now promised a review before the end of 2015 to ensure that by 2017 the system is fit for modern business environment,” Ms Glendinning added. 

De-regulation is another big priority for small businesses and an integral part of the recently-announced Enterprise Bill, she said. “For Britain to be the best place to do business, improving the quality of regulation is essential.” 

Miss Glendenning continued: “The release of the EU Commission’s digital single market strategy means there is a clear legislative road map to increase digital opportunities for small businesses.

 “We need to campaign strongly to connect more small businesses to fast internet, open up access to content in a sustainable way for creative industries, remove barriers to e-commerce and pass a balanced data protection regime.” 

She concluded: “As policy discussions develop over the coming months, it is vital that the voice of business of all sizes – small, medium and large – is heard and that the Government focuses on pro-enterprise measures supporting growth and opportunity for all.”