Small Businesses (Hansard, 23 July 1991)

§ Mr. Jack

[holding answer 22 July 1991]:The Department and its agencies have introduced a number of specific measures in support of the Government's general policy of placing a high priority on helping small businesses. The measures, of both policy and procedure, include:

(i) The Department has continued to consult regularly its panel of employers over the last 12 months, both at formal meetings and in correspondence. We have, 546 in addition, set up a sub-group of the main panel specifically to consider Child Support Agency matters. A representative of small businesses is a member of the sub-group. We have also conducted a major consultation exercise with employers and employers' organisations, including those representing small businesses, on the administrative arrangements for the collection of NI contributions on cars and fuel.
The Contributions Agency, which was launched officially in April 1991, has established additional consultation arrangements with employers and employers' representatives. The first Contributions Conference was held in July 1990; this is to be an annual event with the next Conference scheduled for 6 August 1991. In addition two specialist group seminars were arranged in January and February 1991 and the Agency intends to continue this pattern with at least two seminars each year. The National Federation of Self-Employed and Small Businesses, and the Forum of Private Business regularly attend the Contributions Agency's conferences and seminars.
(ii) Small businesses benefitted when, as a result of research by independent consultants in 1989, we made changes to the literature sent to employers in February 1990. The Department commissioned further research which was conducted in September and October last year to establish employers' reactions to these changes. They were very favourable but further improvements were identified which were reflected in the literature issued to employers in March 1991.
Included in the 1991 communications package was a revised Employers' Guide to National Insurance (NI) contributions, and a new Quick Guide to NI contributions, Statutory Sick Pay (SSP) and Statutory Maternity Pay (SMP). The new Quick Guide is simpler in style and language and more sympathetic to employers' needs than earlier versions. It was written following close liaison with small employers and payroll administrators.
(iii) The Contributions Agency is conducting a customer market survey, with the help of external consultants. The survey is being carried out to establish the views of the Agency's customers (including small and large employers, and the self-employed) on the service currently provided and to obtain their requirements for improvements or changes to existing services. The survey's findings will help to determine how the quality and range of the Agency's service, and its information and advice systems, could be enhanced.
(iv) The Contributions Agency is currently in the final stages of producing both a Contributors' and Employers' Charter. These will provide a clear statement of the service standard to be provided by the Agency. The present intention is to publish the Charters this summer.
(v) With assistance and funding from the Department, the Institute of Data Processing Management produced a test package, in September 1990, which covered the detailed processing of SSP and SMP. Software producers are now able to test their software against this package and thus ensure the accuracy of their product and advertise it accordingly. Employers can consequently purchase, with confidence, software which will greatly assist them in the administration of SSP and SMP.
(vi) The Statutory Sick Pay Act 1991 introduced a change from 100 per cent. reimbursement of SSP paid to 80 per cent. Provision, in the form of "Small Employers' Relief" (SER) was made in the Act to help certain small employers who have above normal levels of sickness in their workforce. Employers who qualify for SER can revert to 100 per cent. reimbursement of SSP if they are liable to pay SSP to an employee for more than six weeks within a period of incapacity for work. We consulted small employers' representatives on the detail of the SER scheme and also on the drafting of 547 the explanatory leaflet NI 278—"Statutory Sick Pay —Small Employers' Relief" which was sent to all known employers.
(vii) From April 1991, businesses whose average monthly payments to the Inland Revenue of Pay As You Earn (PAYE) and NI contributions, were less than £400 in total, were given the option of making their payments quarterly rather than monthly. Seven hundred thousand businesses (half of all employers) could benefit from this measure.
(viii) A Purchasing and Supply Manual has been produced and distributed to all parts of the Department, including the Agencies. It contains a section on small firms, stressing the need to give them an opportunity to tender for the Department's business and to pay invoices promptly. We continue 548 to give prominence, on our training courses for purchasing staff, to the need to consider using small firms and give each participant copies of the Department of Employment booklet "Think Big Buy Small" and "Tendering for Government Contracts". We have an entry in the latter document and are to produce our own booklet for suppliers.

We have not designed performance indicators specifically for monitoring achievements in this area but the Department has a system to monitor proposals which impact on business, to ensure the needs of small businesses are taken into account. We attach particular importance to action taken to help small firms and will continue to explore further ways of doing so.