At last, the Government publishes what it will do to help businesses.

The long-awaited Full Coalition Agreement has now been published, which sets out what the coalition intends to do during its time in office.

Refreshingly, it has a section specifically on business, something which the individual party’s manifestos failed to do. Unfortunately, there are a lot of promises to “review”, “look into” and “consider”, which doesn’t help when SMEs are desperate for help.

The government’s main promises, as far as SMEs are concerned, are as follows:

• Reducing red tape by introducing a “one in one out” policy whereby, if a department introduces new regulation, it must abolish at least as much existing regulation.
• Focusing on “co-regulation and improving professional standards” rather than “tick box” regulation.
• Introducing sunset clauses (whereby regulations only last for a certain amount of time unless actively renewed).
• Giving the public the opportunity to challenge the worst regulations.
• Reviewing IR35 to reduce administrative burdens or uncertainty on the self-employed, or restrict labour market flexibility.
• Finding a way to make small business relief automatic.
• Reforming the corporate tax system by simplifying reliefs and allowances, and tackling avoidance, in order to reduce headline rates.
• Local authorities to take competition issues into account when considering retail planning issues.
• Review of employment law.
• Making it easier and quicker to create a company and moving towards a “one click” registration model.
• Ending the ban on social tenants starting a home business.
• Introducing an aspiration for putting 25% of State research and procurement contracts out to SMEs.
• Considering implementing the Dyson Review to help hi-tech businesses.
• Reviewing regulations concerning takeovers.
• Ending the ‘gold plating’ of EU rules, so that British businesses are not disadvantaged relative to their European competitors.
• Creating Local Enterprise Partnerships to take over from Regional Development Agencies other than in areas where the latter were popular.
• Taking steps to improve the competitiveness of the UK tourism industry.

Gary Cousins
Business Solicitor