FSB Urges Watchdogs to Heed Starmer Growth Edict

By Evans Momodu
2 minute digest


Britain’s Federation of Small Businesses (FSB) has called on key regulators to support Prime Minister Sir Keir Starmer’s initiative to dismantle barriers to economic growth.

In a letter, the FSB urged regulators, including Ofgem and the Financial Conduct Authority (FCA), to adopt pro-growth and pro-investment policies.

The FSB’s letter aligns with the Prime Minister's directive for regulators to identify and remove obstacles to growth. It includes specific reform proposals, such as:

1. FCA Reform: Investigate the widespread use of Personal Guarantees for limited companies, which the FSB argues discourages directors from borrowing to invest.

2. Ofgem Measures: Introduce a 14-day cooling-off period for small businesses entering energy contracts.

3. Ofwat Adjustments: Treat small businesses facing significant price increases similarly to consumers, not large corporations.

4. Ofcom Expansion: Regulate cloud services as critical infrastructure, akin to broadband providers.

5. Competition and Markets Authority: Detail plans to protect SMEs under the new digital markets competition regime.

6. Information Commissioner’s Office: Offer regulatory fee exemptions or discounts for small businesses to ensure parity with larger firms.

7. Financial Reporting Council: Ensure transparency in large firms’ payment practices, encouraging them to adopt the government’s anti-late payment stance.

This appeal coincides with Downing Street’s request for regulators to propose ideas to spur economic growth by 16 January. The FSB’s recommendations underscore the critical role of regulatory bodies in fostering a business-friendly environment, particularly for small and medium enterprises (SMEs).
Source: Sky news