Agenda item

Brexit and Support to Small Businesses

17.1

It was formally moved by Councillor John Booker, and formally seconded by Councillor Pauline Andrews, that this Council:-

(a)       believes there needs to be a bonfire of excessive EU regulations when the UK leaves the EU so that smaller businesses can compete successfully on the global stage;

(b)       further believes Britain's 5.5 million small businesses are the life blood of our economy, making up 60 per cent of jobs in the private sector, according to the Federation of Small Businesses;

(c)        also believes in (i) cutting business rates by 20 per cent for the 1.5 million British businesses operating from premises with a rateable value of less than £50,000, (ii) making HM Revenue and Customs investigate big business or public sector bodies that repeatedly make late payments to smaller customers, (iii) improving access to trade credit insurance to remove the drag on growth for businesses struggling to secure loans, and give small traders the confidence to expand their businesses and (iv) encouraging local trade by pushing every local authority to offer at least 30 minutes free parking in town centres and shopping parades;

(d)       notes that local, regional and national governments have immense spending power totalling around £230 billion, and that whilst in the EU they are required to offer contracts right across Europe, which has made it harder for British business to compete, and forced them to jump through expensive bureaucratic hoops, and believes that Brexit offers the perfect opportunity to open up government order books to smaller businesses, and encourage local, regional and national procurement strategies that will deliver better value for taxpayers;

(e)       acknowledges that it takes courage and determination to set up your own business, and that many self-employed people work for less than the national living wage, especially when they start out, and believes that there should be no requirement for quarterly tax returns, and no increases in Class IV National Insurance or taxes for Britain’s self-employed strivers and that taxes and red-tape should be kept to the minimum necessary; and

(f)        places on record its belief that workers’ rights must be protected once the UK leaves the EU, and that we must enforce the minimum and living wage and reverse government cuts to the number of minimum wage inspectors in England and Wales, and significantly tighten up the rules on zero hours contracts and severely limit their use.

17.2

Whereupon, it was formally moved by Councillor Mazher Iqbal, and formally seconded by Councillor Ben Miskell, as an amendment, that the Motion now submitted be amended by the deletion of all the words after the words “That this Council” and the addition of the following words:-

(a)       believes that leaving the EU presents an opportunity to empower local businesses to compete successfully on the global stage;

(b)       notes that the United Kingdom Independence Party (UKIP) are very fond of stating that ‘red tape and regulations need to be cut’ and that there should be a ‘bonfire of EU regulations’, but in reality many EU regulations will need to be complied with in order to trade with members of the European Single Market and, as such, believes such claims that a lot of EU regulation will be “ripped-up” is disingenuous;

(c)        further believes that instead of racing head-long into removing EU regulation, a considered approach needs to be taken and supports the position of the Labour Party that Brexit should ensure regulation which provides the ‘exact same benefits’ as the single market, with a focus on an outcome that prioritises jobs and economy;

(d)       notes that the Labour Party has raised fears that Conservative backbench MPs will use the Repeal Bill to weaken EU rights and protections, and that Labour MPs will oppose any attempt to do so;

(e)       highlights that the Labour Party had a manifesto commitment to replace the Repeal Bill with an EU Rights and Protections Bill that would address these concerns and ensure that all EU rights and protections would be enshrined in UK law without qualification, limitation or sunset clauses; and that Labour MPs will fight for significant improvements along these lines in the Great Repeal Bill;

(f)        believes that our country’s small and medium-sized enterprises (SMEs) are the backbone of our economy, providing 60 per cent of jobs in the private sector, according to the Federation of Small Businesses; and that technological changes, like the spread of digital manufacturing and rapid communication, mean smaller and faster businesses will be the future of our economy;

(g)       believes that Labour is the party of small business and understands the challenges our smaller businesses face; and notes that, in order to provide the support many small businesses need, the Labour Party’s 2017 Manifesto proposed to mandate a new National Investment Bank, and regional development banks in every region, to identify where other lenders fail to meet the needs of SMEs and prioritise lending to improve the funding gap;

(h)       acknowledges that Labour stood on a manifesto commitment to reinstate the lower small-business corporation tax rate and introduce a package of reforms to business rates – including switching from RPI to CPI indexation, exempting new investment in plant and machinery from valuations, and ensuring that businesses have access to a proper appeals process – while reviewing the entire business rates system in the longer run – and to scrap the quarterly reporting for businesses with a turnover of under £85,000; and

(i)         notes that Labour MPs opposed the Government’s attempts to increase taxation on National Insurance (NI) contributions for the self-employed and further notes that, following the Labour Party’s strong showing at the recent General Election whereby the Conservative Party lost its majority, this proposal has been dropped from the Government’s recent Queen’s speech.

17.3

On being put to the vote, the amendment was carried.

17.4

It was then formally moved by Councillor Andrew Sangar, and formally seconded by Councillor Adam Hanrahan, as an amendment, that the Motion now submitted be amended by the deletion of all the words after the words “That this Council” and the addition of the following words:-

(a)       notes that 56% of exports from Sheffield go to the EU, compared to 12% to the US and 2% to China;

(b)       believes this demonstrates that the Government's plans to take Britain out of the Single Market are reckless and will hit local businesses hard when they are no longer able to export freely to their biggest customer;

(c)        is disappointed with the Labour Party’s position on Brexit and believes that its Leader, the Rt. Hon. Jeremy Corbyn MP, has failed the young Labour voters who wanted a different approach to Brexit, after he imposed a three-line whip on Labour MPs to abstain on a cross-party amendment to keep the UK in the Single Market;

(d)       notes that all Sheffield MPs abstained on the amendment to keep the UK in the Single Market despite 49% of Sheffield voting to remain in the EU last year; and

(e)       directs that a copy of this motion be sent to all Sheffield MPs.

17.5

On being put to the vote, the amendment was negatived.

17.6

The original Motion, as amended, was then put as a Substantive Motion in the following form and carried:-

RESOLVED: That this Council:-

(a)       believes that leaving the EU presents an opportunity to empower local businesses to compete successfully on the global stage;

(b)       notes that the United Kingdom Independence Party (UKIP) are very fond of stating that ‘red tape and regulations need to be cut’ and that there should be a ‘bonfire of EU regulations’, but in reality many EU regulations will need to be complied with in order to trade with members of the European Single Market and, as such, believes such claims that a lot of EU regulation will be “ripped-up” is disingenuous;

(c)        further believes that instead of racing head-long into removing EU regulation, a considered approach needs to be taken and supports the position of the Labour Party that Brexit should ensure regulation which provides the ‘exact same benefits’ as the single market, with a focus on an outcome that prioritises jobs and economy;

(d)       notes that the Labour Party has raised fears that Conservative backbench MPs will use the Repeal Bill to weaken EU rights and protections, and that Labour MPs will oppose any attempt to do so;

(e)       highlights that the Labour Party had a manifesto commitment to replace the Repeal Bill with an EU Rights and Protections Bill that would address these concerns and ensure that all EU rights and protections would be enshrined in UK law without qualification, limitation or sunset clauses; and that Labour MPs will fight for significant improvements along these lines in the Great Repeal Bill;

(f)        believes that our country’s small and medium-sized enterprises (SMEs) are the backbone of our economy, providing 60 per cent of jobs in the private sector, according to the Federation of Small Businesses; and that technological changes, like the spread of digital manufacturing and rapid communication, mean smaller and faster businesses will be the future of our economy;

(g)       believes that Labour is the party of small business and understands the challenges our smaller businesses face; and notes that, in order to provide the support many small businesses need, the Labour Party’s 2017 Manifesto proposed to mandate a new National Investment Bank, and regional development banks in every region, to identify where other lenders fail to meet the needs of SMEs and prioritise lending to improve the funding gap;

(h)       acknowledges that Labour stood on a manifesto commitment to reinstate the lower small-business corporation tax rate and introduce a package of reforms to business rates – including switching from RPI to CPI indexation, exempting new investment in plant and machinery from valuations, and ensuring that businesses have access to a proper appeals process – while reviewing the entire business rates system in the longer run – and to scrap the quarterly reporting for businesses with a turnover of under £85,000; and

(i)         notes that Labour MPs opposed the Government’s attempts to increase taxation on National Insurance (NI) contributions for the self-employed and further notes that, following the Labour Party’s strong showing at the recent General Election whereby the Conservative Party lost its majority, this proposal has been dropped from the Government’s recent Queen’s speech.

17.6.1

The votes on the Substantive Motion were ordered to be recorded and were as follows:-