EU publishes 'Small Firms Charter' report

The report is a review of how each EU member state is implementing the Small Firms Charter. It urged every country, as well as the European Commission itself, to 'Think Small First' and to look at the various taxation systems small businesses must comply with throughout Europe.

The key aims of the Small Firms Charter include:

• Securing better, simpler regulation;
  
• Better representation for small firms - to match the representation
  of big companies;
  
• Cheaper, faster start-up rules for new businesses and entrepreneurs;
  
• Promoting top-class small business support;
  
• Improving access to finance.

A section outlining taxation states: 'Tax systems should be adapted to reward success, encourage start-ups, favour small business expansion and job creation, and facilitate the creation and the succession in small enterprises. Member States should apply best practice to taxation and to personal performance incentives.'

Germany was praised in the report for exempting small businesses from turnover tax and planning a business tax reform system with incentives for sole proprietors. Finland reduced taxation for low-income entrepreneurs. The UK was mentioned for being one of the countries that had 'developed tax incentives for small enterprises' purchases of ICT equipment.'

An EU office was set up in Brussels last year to represent and co-ordinate the views of UK small businesses and act as an effective voice against over-regulation and bureaucracy. 'smallbusiness|Europe' was given £275,000 funding by the Department of Trade and Industry and, according to the Government: 'Plays a constructive role in intercepting and influencing new regulations and legislation.'

The Minister for Small Business, Nigel Griffiths MP, said: "The UK is the first member state to take direct action to ensure small firms' voices are heard not only nationally but in Europe by setting up 'smallbusiness|Europe'. This reflects our commitment to enterprise and implementing the European small firms charter."

"This landmark report puts the spotlight back on small firms, recognising their central role in the economic activity of the European Union. There are 20 million small businesses in Europe that account for 99 per cent of all businesses and provide employment to 65 million people so it is crucial the right environment is maintained for those businesses to flourish. The UK figures are 3.7 million SME's employing 12 million people, contributing £1 trillion a year to our economy - a vitally important sector!"

The Professional Contractors Group last year called on large corporations across Europe to 'Think small and think efficient' when they need to outsource specialist technical work.

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Richard Powell, UKTECH