Impact Election Special - Spring 2015 by Kathryn Young

Centre for Enterprise

Election Special Edition

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IMPACT SPRING, 2015

After the election, which policies would aid business growth and regional development?

þ What do North West Small Businesses want from the next government? þ Viewpoints from: North West LEP Chairs Chief Executive of Greater Manchester Chamber of Commerce, Clive Memmott IoD North West Chair, Mike Perls þ What the CBI & FSB think SMEs need from government

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SME Opinion: Election 2015

Introduction from the Prof.

SPRING, 2015

An Election Special!

Top five issues North West Businesses want to see addressed by a future United Kingdom Government.

1 2 3 4 5

BUSINESS RATES

£ HMR C

TAXATION

BUSINESS SUPPORT

EDUCATION

DEREGULATION

“Promote and facilitate a wider range of apprenticeships, particularly in the digital sector.” Richard Wilde, Mura Innovations Read more opinion from North West businesses on page 3.

Elections are a recurrent part of the UK landscape, with some great photographs on page 8 showing how things have changed - or stayed the sameover the years. These are part of the collection of political pamphlets, photographs and other materials at the People's History Museum in Manchester. Check out their exhibition, Election! Britain Votes, which is open until June 28th June 2015 to understand how the process has evolved.

• Picture by Mike Simensky

Professor Lynn Martin Professor of Entrepreneurship and Director of the Centre for Enterprise

Despite this being an election special, no party views are represented or promoted and no leadership debates reviewed. Instead, this edition of Impact looks at the views of businesses, business associations and chairs of Local Enterprise Partnerships about the policies they would like to see in the year after the election - whatever party or parties win in May. If you are a business leader check your views against those of the owners of high growth small firms captured on page 3-4. Reform and reduction of business taxes seem to be a critical issue for these businesses, with improvements in business support and apprenticeships also signalled. In the same pages our researchers also had fun exploring the different manifestos and comparing these with the hopes of small firm owners. How did they match up? We are very grateful to company owners for sharing their views and to the Chairs of Northwest Local Enterprise Partnerships, (page 5-6) who have clear views about the policies needed to support business growth. Local needs here include budget impacts and enterprise actions. Focusing locally also means something distinct in Manchester with the development of DevoManc, the devolution of the city region, figuring in Mike Blackburn's comments on page 6. This chimes with the Northern Powerhouse approach discussed by GM Chamber Chair Clive Memmott and Institute of Directors Chair Mike Perls on pages 7-8. Both, though, have other comments reflecting the small firm landscape and the need for business to be close partners with policy to ensure there will be effective results. Apprenticeships are examined on page 6 by expert Liz Gorb, with her background in managing new higher level apprenticeships at MMU. So, however you vote, take this opportunity to reflect on the business perspectives through their direct views or association wish lists for post-election policies in 2015/16. We will run a follow up this time next year to see which policies emerged and how they fitted the range of views. Best Wishes for 7th May!

“Putting knowledge to work to grow your business” The Centre for Enterprise at Manchester Metropolitan University is passionate about turning research into practical knowledge, which can be applied to improve regional businesses. Our areas of expertise are growth, leadership, entrepreneurship and sustainability. We offer a range of programmes around these themes, many of which are fully-funded. Register with us to access our knowledge, our business network and to grow your business.

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Contents

IMPACT

INSIGHT: How can the New Government Support Businesses? The Centre for Enterprise’s Dr Valerie Antcliff and Dr Jacqueline Carter take a detailed look at what SMEs need and what is on offer from the major parties.

VIEWPOINT: NORTH WEST LEPs We asked the Chairs of the North West LEPs three questions about policies supporting their area after the election.

What do North West Businesses want from Government?

#AskTheExpert - Apprenticeships MMU Apprenticeships Manager Elizabeth Gorb answers your questions on the election hot topic.

VIEWPOINT: CLIVE MEMMOTT the Chief Executive of Greater Manchester Chamber of Commerce.

8 VIEWPOINT: MIKE PERLS the North West Chair of the Institute of Directors (IoD) and founder of MC2.

Clive Memmott, Manchester Chamber of Commerce

ELECTION! Britain Votes An exhibition at the People’s History Museum tells the story of elections - past and present.

VIEWPOINT: FSB & CBI The Federation of Small Business and the Confederation of British Industry publish what they would like to see from a future government.

WORK WITH US: We would love to work with you. The first step is to get in touch.

Mike Perls, IoD North West Chair & founder MC2

Ask the Expert

Each issue of IMPACT carries a central theme, but also relies on contributions from the businesses we work with, our dedicated research team, the wider MMU community and our partners. We always welcome your input so please get in touch.

In each issue we feature an expert who will answer your questions.

For future IMPACT e-magazine issue themes and to submit a contribution for consideration please email: k.young@mmu.ac.uk 0161 247 3989

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In this issue our apprenticeships expert Elizabeth Gorb answers questions on the election hot topic. Turn to page 6 to read more. Keep an eye on our twitter feed (@mmucfe) for the topic of next issue’s #AskTheExpert. Questions can be submitted via twitter or by emailing: cfe@mmu.ac.uk

Want to subscribe to Impact? Visit www.mmucfe.co.uk where you can sign up for our free new event and programme alerts. Join the Centre for Enterprise on LinkedIn Follow us on Twitter @mmucfe

General Enquiries? Telephone: +44 (0)161 247 3871 Email: cfe@mmu.ac.uk

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Insight

SPRING, 2015

• Written by Dr Valerie Antcliff & Dr Jacqueline Carter

How can the New Government Support Businesses? th

Ahead of the general election on May 7 business has emerged as one of the key political battle grounds. The Centre for Enterprises’ Dr Valerie Antcliff and Dr Jacqueline Carter take a detailed look at what SMEs need and what is on offer from the major parties. The debate is fast-moving and the media coverage can be overwhelming. However, what is clear is that 2015 is set to be a year of change in the North West. The General Election is almost upon us, with 'Devo Manc' the latest initiative in Chancellor George Osborne's plan to create a “Northern Powerhouse”. Business associations perspectives Here at CfE we've been looking at what businesses would really like the new government to do. We began with business organisations. Both the Confederation of British Industry (CBI) and the Federation of Small Business (FSB) have published their own wish lists (a detailed summary is shown on p9). Reform of business rates and

taxation, vocational training and a simplified system of lending to business are key priorities for both organisations. The FSB is also keen to see improved access for small firms in the public sector procurement process, a streamlined approach to business support and a guarantee that regional economic priorities are taken into account in the planning of major infrastructure schemes. The small firm view So what about North West businesses? See below for the results of a poll of our alumni, owner-managers of high growth firms in the North West, asking them what one thing they would like the new government to do for business.

a What CfE Alumni would like New Government to do How they voted

Reduce Business Rates t Increase Small Business Suppor

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Reform and reduction of business rates was the main priority, as a means to encourage business start-up and to allow the expansion of small businesses into larger premises. As the owner of a small manufacturing business explained: “Change the business rates system so that they are re-evaluated and do not punish small businesses that wish to grow their business and premises.” Respondents felt that it was important that the future Government offers support for businesses given limited free support currently. This was seen as a problem for new businesses, which may lack the funds to pay for business advice. Here are some suggestions from our survey respondents: “…So I just ask that they try and get a bit more involved with new SME companies with new patented products, that have the potential to grow at alarming rates internationally, and a lot quicker if the Government was behind them. It is very stressful when you know what your company can achieve, but having limited funds and resources just keeps holding you back, I hope you put this message across to them and maybe I could get some serious help sooner rather than later” - Mike Boylan (Director), Maxipot Limited “Support not only micro/SME businesses in the first couple of years of "life" but continue to support them as they grow and hit new hurdles…” - Science & Technology Micro Business

renticeships Improve Education/Training/App

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cy Reduce Government Bureaucra Reform Corporation Tax

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Laws Reform Employment & Pension Simplify & Reform VAT

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Simplify the Tax System

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neurs Tax Breaks for Startups/Entrepre Support for Sole Traders

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sses Increased Focus on Local Busine icies Develop Long-Term Business Pol

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inesses Environmentally Sustainable Bus Spending Less Focus on Deficit/Increase

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Next came suggestions about simplifying the taxation system or reducing taxes e.g. corporation tax and VAT for small businesses to promote small business growth. As a Micro Business in the Business Services sector confirmed:

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“… I have to pay corporation tax on money I may leave in a business to invest & grow!”

Support for Innovation

Affordable Housing

Respondents highlighted the need for training to be available, tailored to meet the needs of a modern workplace.”

Improved Broadband Access Nurseries Pay Childcare Money Direct to

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Also, where financial support or business advice was available it was often difficult to locate and this needed to be simplified. “Make it easier to find and access the information they need to get up and running, including making it easier to get stuff done online.” - Ed Cox (Managing Director), Reason Digital

“Promote and facilitate a wider range of apprenticeships, particularly in the digital sector” - Richard Wilde (Managing Director), Mura Innovations It was felt that some training, apprenticeships and academic education did not provide relevant skills e.g.

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Liberal Democrats

Labour

Conservatives

Deregulation

Give them a voice at the heart of government by establishing a Small Business Administration. It will ensure procurement contracts are accessible and regulations are designed with small firms in mind.

Save £10bn through cuts in red tape. To introduce a new regulation departments would have to justify it with a double cost saving. Reduce forms needed to register a business. Establish a Small Business Conciliation service to mediate in disputes.

Cut red tape by establishing a Regulation Advisory Board. Focus on regulations to promote a low carbon economy and efficient innovation.

Business Rates

Cut business rates for small businesses, freeze energy bills, tackle the problem of late payments.

A review of the business rates system. Rate relief doubled until April 2016.

Review business rates and look to implement a system of taxation based more broadly on land values.

Regional Development

Devolve £30 billion of funding to city and county regions to support a more coordinated approach to regional development. Create a British Investment Bank and a network of regional banks to improve access to finance for small business. Support mutual and co-operative organisations, boost funds to small businesses and allow regions to fund local businesses and stimulate growth.

Devolve power to the Greater Manchester Combined Authority, including greater responsibility for business support and further education. Fund infrastructure, especially new high speed rail routes to create a ‘Northern Powerhouse’.

Continue the Regional Development Fund. Invest in transport infrastructure to create a ‘Northern Economic Corridor’. Increase trade by growing manufacturing, especially in aerospace, chemical, low carbon energy and motor vehicle sectors.

Apprenticeships

80,000 new apprenticeships. A high-quality apprenticeship to every school leaver who gets the necessary grades, and require businesses bidding for government contracts to include apprenticeship opportunities.

Create three million apprenticeships to be paid for by welfare reform. £2,000 bonus for each firm hiring an apprentice.

An extra £1 an hour for the lowest paid apprentices. Commitment to double the number of employers offering apprenticeships to young people to 360,000.

communications skills that small businesses need and that the new government therefore should: “Adequately fund training for young people so that they can be equipped with the skills that businesses need, either in school/college/university or while learning on the job.” - Small Business in the Financial/Insurance sector Several respondents were keen to see a reduction in “red tape”: “Many governments have made promises with regard to reducing "red tape" for business. This is a real problem for small businesses where the head count is critical. However each successive government has introduced more. Needs a radical review not a mere pruning exercise.” - Small Business in the Manufacturing sector

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Party responses and Devo Manc We have summarised how the three main political parties plan to address business needs. The notion of a 'northern powerhouse' to maximise the economic potential of the north features among the priorities of all the main parties. For Greater Manchester, plans for 'Devo Manc' are already in place which will replace the post of Police and Crime Commissioner with a directly elected mayor for Greater Manchester from 2017, with a temporary mayor appointed to run the Greater Manchester Combined Authority in the interim. In addition to budgets for health, housing, transport and planning, the directly elected mayor of Greater Manchester would gain: •greater responsibility for business support and further education

This would include responsibility for devolved business support budgets to ensure that Greater Manchester businesses get the right support, at the right time, to help them to grow and innovate, and the ability to influence further education provision in the city region by giving skills providers the financial incentive to match the supply of skills to the needs of local employers. 'Devo Manc' , however, was the only issue that divided opinion among the small business owners that we spoke to, with many business owners wanting better information about it to know how it would affect their business. This, no doubt, is an issue that Impact will revisit in future editions but we also look forward to mapping policies over the year against suggestions from businesses, business associations and LEPs.

•up to £30m a year for the growth generated by its economy.

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North West LEP Viewpoint Local Enterprise Partnerships (LEPs) were established so economic and growth plans can be set locally, and focus on regional priorities. We asked the Chairs of the North West LEPs three questions about policies supporting their areas after the election. 1. In the next 12 months, what changes to the policy landscape do you think would have the most beneficial effects on businesses in your area? 2. What are the key LEP policies that will support businesses in the next year? 3. How can businesses support the LEP in shaping the regional and national policy agendas of the future?

George Beveridge, Cumbria LEP Chair

Keswick & Derwent Water

1. Cumbria is poised to benefit from unparalleled levels of private sector investment in the coming years. If we are to secure the maximum economic benefit from this investment, we must continue to see a policy landscape that will enable our businesses to compete in a global economy. In Cumbria that means policies with a focus on skills, innovation and finance. Much of the investment in Cumbria will require a highly skilled workforce in STEM related areas. It is vital that we continue to see investment in training, generating the scientists and engineers of the future. The pool of talent in these areas must be expanded and innovation nurtured. The business community are looking for stability in the LEP structures post election, so fine tuning for greater effectiveness is

fine, but wholesale re-organisation and a focus on structures will switch off the private sector and likely reduce participation. 2. Cumbria LEP will seek to enhance and improve the quality of business support provision through the Cumbria Business Growth Hub in the coming year. It is imperative that we link investment for growth through the Regional Growth Fund and investment in infrastructure, through the Growth Deal, to high quality business support. We need to ensure that businesses get what they need, from the right people at the right time. The delivery of the Growth Hub must also be complemented by delivery of the Cumbria Skills Plan. In order for our businesses to grow they not only require the right levels of investment, but they also have to be able to source people with the right skills. We are optimistic that our skills plan, working in tandem with new European Funding Programmes, will ensure that the talent pool is developed.

The new European Funding Programmes will also enable significant investment into areas of the economy that will benefit business. Innovation and ICT infrastructure projects funding by European Funding are just two examples of areas where the LEP will be able to support improvements, enabling businesses to grow in the coming years. 3. The LEP has a pivotal role to play in channelling and distilling the key business messages from the business community and then raising these with Government. In order to do that we must ensure that we have a continuous, open dialogue with business and that we fully understand what the business community are saying to us. The LEP's are a key government instrument with a central role to play in securing economic growth, but we can only inform the debate if we are fully informed ourselves as to what the priorities are. More than ever we need to be able to provide a strong evidence base and justify any call for investment or change in Government agenda. In order to do that the business community has a vital role to play in supporting the LEP to assemble our evidence base.

Edwin Booth, Lancashire LEP Chair

BAE Systems at Samlesbury

1. When taken in the round the latest budget was relatively neutral in terms of its effect on business. As most commentators have noted, the forthcoming election is one of the most difficult to predict of recent times. It will be interesting to see the makeup of the government after 7th May and what approach it will take towards business.

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2. The Lancashire E n t e r p r i s e Partnership is committed to creating the right e n v i ro n m e n t f o r businesses to flourish, so our focus is very much on c o n c re t e a c t i o n s rather than policies. The year ahead will see a number of exciting initiatives go from strength to strength and make a real difference to the Lancashire economy. We have just welcomed the first tenants to our Enterprise Zone, which will now include part of the Blackpool Airport site, bringing the first of 6,000 jobs directly, with a further

5,000 to 7,000 in the local supply chain. We have just signed the Lancashire Growth Deal with central government and will see work continue on projects funded through the £250m plus of government funding that this brings into the county. And we have just announced that BOOST Business Lancashire, the county's £7.2m growth hub, has now worked with 2,000 local businesses, creating 400 new jobs. I'm sure that BOOST will continue to help the county's businesses in the year ahead. 3. I'd encourage businesses to join their local Chamber of Commerce and insist that the Chambers are rigorous in identifying common themes and communicating them to the Lancashire Enterprise Partnership, MPs, Government agencies and ministers.

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Mike Blackburn, Greater Manchester LEP Chair

MMU Business School

1. Greater Manchester has support for business growth within its Devolution Agreement with Government. This is a critical part of our overall approach to unlocking the necessary, continued improvement in economic performance in order to re-balance our economy. It also provides the means for local and national support for business to be integrated, driven by the needs of business and delivered in a cost-effective fashion. We will expect Government's initial approaches in this regard to be broadened over the next two years. Amongst our priorities are to increase the value of exports amongst

businesses in G r e a t e r M a n c h e s t e r, t o continue to improve access to business finance and to deliver skills support for businesses that our economy requires. Any policy change needs to build on our efforts and aspirations in this regard. 2. LEP strategy will support business growth in a number of key sectors including life sciences, advanced manufacturing & engineering, finance & professional, creative & digital and energy & environment. Our approach is about both attracting international businesses to locate here, as well as supporting indigenous businesses and new starts. We have also prioritised particular international markets for both inward investment and exporting activity. Our Business Growth Hub is the LEP's vehicle for bringing together the wide

range of business growth support available and for taking action to respond to the growth needs of business. We will be putting even greater emphasis upon this approach in the future. In the slightly longer-term we will want to make sure that the new spatial plan for Greater Manchester supports business growth, making available the land, energy infrastructure, housing etc. to support future growth. All of this has to be achieved with regard to the stretching carbon reduction targets we have set ourselves. 3. The private sector representation on the LEP, and the LEP's Business Support Advisory Board, together with partnership working with private sector bodies including Chambers of Commerce, the Engineering Employers Federation and Federation of Small Business, all provide businesses the opportunity to inform the LEP's agenda. We will complete the 2015 business survey this Autumn and that will inform local policy and strategy as does the high-level of business engagement with our Growth Hub and its programme of events.

Robert Hough, Liverpool City Region LEP Chair

Liverpool skyline

1. Obviously, the election might bring forward a host of new policies. One thing we would like to see, from a LEP perspective, is some continuity of approach in terms of Government encouraging local areas to involve business in the setting of local priorities – reinforcing the roles of LEPs would be welcome. We have also extensively lobbied for a rebalancing of

spend, especially in infrastructure and science. In 2014, as a direct result of our work, we have secured over £800m o f s p e n d i n g commitments into C i t y R e g i o n Credit to ACC Liverpool infrastructure and in 2015 will be launching our Innovation Plan with the intention of seeing science and research spend also rebalanced. Innovation is key to growth, and a policy change that sees more invested in the wider North would be welcome. 2. We are renewing our focus on small business in 2015. We regularly talk about the gap of 18,000 businesses from which the

City Region suffers – and this figure has actually got bigger over time despite the considerable European money that has supported start-ups. The LEP's role therefore is making sure the next set of business support is more targeted at where there is genuine market failure, so that there is greater impact in growing the number of businesses. 3. We run various events over the year where businesses can get involved. The key thing, however, is making sure the business voice remains embedded in decision making structures. No other Combined Authority allows the LEP to have a voting right in their decision making – ours does. This is a significant innovation and we need to know what business thinks so we can exercise our influence.

#AskTheExpert: Questions & Answers Elizabeth Gorb, Centre for Enterprise Apprenticeships Manager, answers your questions: John Williams @mrjohnmw

Ian Gibbs, via email

“What policies are needed after the next election to support the growth of apprenticeships?”

“How are MMU supporting the apprenticeship agenda?”

We have major skills shortages in the UK and in many areas have failed to prioritise vocational training. Politicians see apprenticeships as a way of addressing these gaps and also youth unemployment. They are outbidding each other in setting targets for the next few years. As the Lead on developing Higher Level and Degree Apprenticeships at MMU, I know that we have seen huge changes in the last 2 years. There is an awareness that universities need to be involved in delivering degree-level apprenticeships. We now need consolidation and to raise awareness in schools and colleges of the fantastic opportunities available.

MMU has been one of the first universities in the UK to develop and deliver advanced and higher level apprenticeships in Chemical Science and Legal Services. Working with the Tech Partnership and a group of forward looking employers, including both multinationals and innovative Manchester-based digital agencies, we are now set to deliver the first Degree Apprenticeship in Digital & Technology Solutions from September. Other areas for future trailblazer programmes include Early Years and Business Management.

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Send future #AskTheExpert questions to:

Twitter: @mmucfe Email: cfe@mmu.ac.uk Phone: 0161 247 3989

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Viewpoint Clive Memmott, Chief Executive of Greater Manchester Chamber of Commerce Our latest Campaign for Business was launched last year. These things are not standalone one-off pieces of work but are the culmination of over 12 months of intense discussion and debate with our members – representing businesses of all shapes, sectors and sizes across the whole of Greater Manchester. We did this to identify those major issues that were affecting them most and which they wanted to see the next government tackle. Increased local control One of the consistent themes that we identified early in this and which runs through several other issues, was the desire for greater local control over powers and spending. This reflects both the pride in what Greater Manchester has achieved in recent years and the ambition to do more based on the simple proposition that we know what is best for the local economy. Over the last few months this issue has come to the forefront of our work. As it is intrinsically linked with a large number of other issues identified in our work such as infrastructure. T h i s d o e s n ' t j u s t m e a n p hy s i c a l infrastructure in terms of road, rail and airport connectivity, it also means digital infrastructure (and that's about good upload speeds as well as downloads). Greater Manchester is growing and has the potential to grow much further and faster if we have appropriate infrastructure and an appropriate joined-up strategy – one that ensures that the end result is greater than the constituent parts. Investment in infrastructure continues to be key priority – something which has also featured heavily in many of the Northern Powerhouse announcements. This takes a number of different forms at different levels.

The progression of HS2 and HS3 needs to happen in a timely manner, but it needs to happen in conjunction with the upgrade of other local routes. Many of our members have pointed out that they don't want to see a future where it takes 80 minutes to get to Manchester from London, but then takes two hours to get from Manchester to Rochdale. Decision making process On the decision making process too, this must be slicker, if we are to benefit from an improved economic outlook. We cannot continue to have a situation where it takes twice as long to get a planning decision greenlit on major infrastructure projects than it does to build. In our Campaign for Business a few months ago we called for a national infrastructure strategy – this has to be a priority for the next government and a priority for the incoming administration in Greater Manchester. There is a great deal of optimism about Greater Manchester's ability – in theory – to manage its own affairs. Naturally, our members like the idea of decisions being made nearer to home. Having said that there is a rich vein of pragmatism which means they want a system in future which is better, more responsive and more attuned to the needs of businesses in the city region that the system it replaces. If it isn't more efficient than the one it's replacing, then there's no point doing it. Rebalancing the economy When George Osborne and David Cameron came to Manchester in January (following the Northern Powerhouse speech last June) to an event organised by the Chamber, they talked again about re-balancing the economy. This went down very well with

Clive Memmott

the assembled Chamber members. Rebalancing means not setting out to disadvantage a world city like London, but making sure that Greater Manchester and our other great city regions, can access and exploit the opportunities which are available. By doing so, we can make can make an increasingly effective contribution to the overall national economic performance. Whilst dramatic progress has been made under the current government around devolution, there is every expectation that whoever is in government after 7th May this momentum will continue. These are important decisions to get right. We are the UK's second largest economy, so the job is not to just make sure the work continues, but that it's done right. Our primary task is to speak up on behalf of business and work hand in glove with the next government and the first Greater Manchester Mayor to make this happen.

An innovative programme for SME managers

Managers2Leaders

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Mike Perls, North West Chair of the Institute of Directors (IoD), discusses the policies that the region's SMEs are hoping to see after May's general election SMEs are the heart and soul of the UK economy, and in attempting to attract votes, all parties need to recognise the importance of our smaller companies. Influencing future government policy should therefore be at the top of their agendas, with the general election offering a unique opportunity. Supporting the northern powerhouse In terms of policies, there are a number of concessions that businesses should look to promote. In particular, the continued extension of the Northern Powerhouse scheme is something the IoD is firmly behind, with all three of the major parties promising increased devolution of powers to the North West. Recent months have seen numerous promises around extended connectivity between the northern cities, along with providing Greater Manchester with more control over its health and social care budget. It is our responsibility as Northern businesses to make sure they stick to that. However, in order for the North to truly become a 'powerhouse' and stand alongside London, all areas of business must be encouraged by government to maximise their growth potential. We've seen life sciences being publicly backed in government announcements, but the North West is home to so much more. We host some truly innovative companies, spanning the likes of manufacturing, technology and

creative industries, and more should be done to remove barriers to growth. Whether through tax cuts or additional government funding for startups, the North West deserves a better deal. Business rates & supporting the workforce While the Northern Powerhouse will inevitably aid growth in the region, the government must not be under any illusions: this alone is not enough. Specifically, reforming business rates to prevent the growth of companies being stifled would be welcome, along with tax cuts heavily focused upon 'middleweight' companies, which have benefited much less from current corporation tax reforms. CliveMike Memmott Perls

However, though the needs of business should be satisfied, we recognise that in order to encourage growth, we have to support our lower income workers. As such, recent extensions to the lower rate of income tax, along with the reduction in national insurance, have been positive steps. The additional cash being placed in our workforce's pockets should enable the government to introduce policies focused on SMEs. We now need to make our voices heard. Election impact

economy is run, and while we can hope for an outcome producing a stable majority government, there is a realistic chance of further coalition. SMEs often bear the brunt of coalition delays to reform, so our major parties should look at additional ways to support smaller companies through this transition. Although it has historically been the norm for Whitehall to court big business, now is the time for the UK to focus on its most prized assets. That is what I call being “probusiness”.

The outcome of the election is set to have a significant impact on the way that the

Election! Britain Votes A new exhibition at Manchester’s People's History Museum is looking back on 100 years of election history and also tracking the current campaign As the home of the country's largest collection of campaign, political and election material, the People’s History Museum is the place to debate, discuss and reflect on the importance of your vote.

Constituency maps, a live polling monitor and 'seats to watch' updates are just some of the ways visitors can follow the story as it unfolds. A live feed of political odds and evolving data is being screened, giving insight into political attitudes and behaviour for 2015. Artist-in-residence Alex Gardner is making visual sense of the 'how' and 'why' of elections, demystifying the process with installations and infographs exploring everything from how votes are counted to what a typical MP looks like.

Engaging young people didn’t seem to be a problem in the 20s

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The exhibition charts the history of general elections over the past 100 years and explains the mechanics of the voting process. Posters, photographs, media clippings and personal objects representing each election of the 20th and 21st centuries are on display. This includes artefacts charting historic elections.

40 years on we still rely on the same technology for today’s elections Election! Britain Votes, runs at the People’s History Museum until 28th June. Entry is free. www.phm.org.uk

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Viewpoint

• Written by John Williams

Business Organisations Deliver Their Wish lists The Federation of Small Business (FSB) and the Confederation of British Industry (CBI) publish what they would like to see from a future government Two of Britain's leading business organisations have published their recommendations for a future UK Government. The Federation of Small Business (FSB) and the Confederation of British Industry (CBI) have set out detailed measures, to not only assist business, but also support a sustainable economic recovery. The FSB manifesto is encouraging the next government - in whatever form it should take - to recognise the growing importance of small businesses to the UK economy. Ninety-nine per cent of the 4.9 million UK businesses are small and micro enterprises, so the FSB are calling for the introduction of a long-term, pro-enterprise agenda. The CBI report focuses on practical measures a new government can start to make progress towards within the first 100 days. It emphasises the importance of delivering from day one and not only shortterm fixes, but implementing policies that will support sustained growth for Britain's businesses. Tax reform Both organisations recognise that the current system of business taxation is in urgent need of review. The FSB believes the system imposes prohibitive costs on small businesses. They want to see small business rate relief doubled, permanently and immediately, before establishing a comprehensive and wide-ranging review of small businesses taxes. The CBI echoes the call for tax reform, calling on the next government to set out a clear business tax road map, to set the way ahead and fix the 'broken' business rates system. A new framework should support businesses to become more competitive and the FSB want to see incentives for growth, investment and job creation. SME support The FSB small businesses to be given a voice w i t h i n t h e h e a r t o f g ove r n m e n t . Establishing a UK Small Business Administration to focus national policy decision-making, could encourage a UK-

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wide enterprising culture, helping start-ups to grow and streamlining business support. For medium-sized businesses, the CBI would like to see a boost for alternative sources of finance as it has identified a gap in long-term growth capital. Making the Business Bank a 'one-stop-shop' for business finance, giving a much greater public face to all available finance options, would re d u c e t h e c o n f u s i o n a n d uncertainty faced by businesses.

CBI Wish List MEDIUM-SIZED BUSINESSES

BUSINESS RELATIONSHIP

Boost alternative sources of finance, make the Business Bank a 'one-stop-shop', outline support for role of finance sector in the economy.

Emphasise independence of Competition and Markets Authority, commit to 'one-in-twoout' on new regulations.

JOBS

TAX

Extend free childcare, keep labour market flexible, review gender pay gap.

Publish a business tax roadmap, begin business rate reform, boost HMRC resources to tackle evasion, commit to OECD project to update global tax rules.

Rebalancing the economy Making key improvements to infrastructure are vital to helping any long-term plan to succeed. The CBI wants to see quick decisions made around the UK's airport capacity plans and the FSB sees infrastructure investment as a tool for rebalancing the economy across the regions. Ensuring economic growth throughout the whole of the UK is the only way to develop sustained and long-term economic growth. The FSB gives specific focus to employment regulations and the amplified impact they have on small businesses. Therefore, making it as easy as possible to take on employees and raising the employment support allowance would provide a small business boost. The CBI believes that their measures and more will help to create a British 'Mittelstand', with more businesses encouraged to begin selling overseas. It wants to see more free-trade agreements, especially for medium-sized businesses to support this aim. World-class potential Both organisations take a positive outlook of the future for British business, if the right policies are put in place. The UK is a great place to invest, but with more planning and concerted support, it has the potential to be an entrepreneurial hub – the best place in the world to start and grow a business.

FSB Wish List BUSINESS SUPPORT

FINANCE

Streamline business support schemes, eliminating duplication and waste through a coherent, focused approach that is in place for the long term.

Tackle late payments, extending payment terms, retrospective discounting and upfront supplier charges. Promote alternative finance and give longterm backing for the British Business Bank.

ENCOURAGE INVESTMENT

REGIONAL POLICIES Consider regional economic priorities, ensure regions are integrated into major UK infrastructure plans such as HS2 and airports, to maximise growth in the regions.

Setting tax allowances on annual investment at a generous but stable level that helps businesses to plan rather than be subject to short-term change.

GOVERNMENT AS CUSTOMER

VOCATIONAL EDUCATION

Improve access to £230 billion of procurement, streamline forms, avoid excessive contract conditions, publicise opportunities and encourage collaboration.

Promote vocational education and training so it is considered of equal status to academic education, while increasing academic standards.

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CENTRE FOR ENTERPRISE IMPACT

mmucfe.co.uk

SPRING, 2015

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