The Private Sector, i.e., the wealth producing sector of the economy employs approximately 21 million workers of which 12 million, i.e., 58% are employed by the 3.8 million small businesses.  Small businesses contribute over 50% of Gross National Product (GDP) and collectively are big business, being responsible for supporting the UK economy to an ever increasing extent.

Despite the promise of the Chancellor that public sector employment would be reduced, it has continued to grow (currently running at 1 in 4 of the total workforce) and since 1997 the private sector has paid an extra £20 billion per annum in tax, together with ever increasing amounts of National Insurance, Stamp Duty and Fuel Tax to support this mushrooming wealth consuming sector.

Popular Alliance will reverse this state of affairs as a matter of urgency (see policies on Taxation and Public Finance).

Business as a whole and small businesses in particular are facing an ever increasing torrent of bureaucratic and job destroying regulations from the unelected bureaucrats in Brussels, with the whole hearted support of the inane politicians in the mainstream parties resulting in the strangling of business expansion, the failure to create more jobs and falling productivity.

Recently the Confederation of British Industry (CBI) reported that from 1998 to 2005, the cost of implementing all new regulations imposed by the E.U. has totaled £37 billion, costing a typical company £13,464 per annum, this being a direct charge against business profits.  In 2007, this figure has now increased to £55 billion per annum, and is totally unsustainable in the long term.

In this connection, the Organisation for Economic Co-operation and Development (O.E.C.D.) has stated that small firms (1-19 employees) incur more than three times higher regulatory costs per employee than medium sized firms (20-49 employees) and more than five times higher costs than larger firms (50-500 employees).

As pointed out by the Federation of Small Businesses, if each small firm in the E.U. was able to hire one more worker, there would be no unemployment across the whole continent.  In fact, current E.U. policies have resulted in rising unemployment in Germany, 7.6%, in France 6% and in the U.K. it is now approaching 5.5%.

The Working Time Directive has had the effect of removing from many small business employees the freedom to choose the number of hours that may be worked, thus restricting remuneration.

The Agency Workers' Directive is another piece of E.U. folly which may soon be foisted upon already hard pressed industry.  The intention of this Directive is to give temporary workers full employment rights after only six weeks, thereby placing intolerable burdens on businesses seeking to recruit staff.

Popular Alliance would extend the qualifying period for temporary agency workers before they are granted full employment rights to 12 months.

Over the past seven years, nearly 100 pieces of legislation have been enacted in connection with employment which together with the torrent of E.U. Directives, has made employment difficult to obtain in the small business sector.

The bureaucrats and most politicians appear to be quite oblivious to the fact that their actions, having caused an economic downturn over the whole of the E.U., are akin to re-arranging the deck chairs on the Titanic as the ship sinks and one is forced to question whether they have taken leave of their senses - that is if they ever had any!! 

In the face of the above, which is reminiscent of the economies of the mad house, Popular Alliance is totally convinced of the necessity of leaving the E.U. as quickly as possible in order to protect the economic and financial wellbeing of the nation.

Other matters which affect business and employment are the National Minimum Wage and the reform of payroll systems.  In connection with the former, Popular Alliance is not opposed to the NMW in principle but is concerned that since its introduction in 1999, it has been increased by 35%, and recognises that further increases on this scale are likely to threaten existing levels of employment.

Popular Alliance's policy is that future increases in the NMW should be linked to inflation.

Energy costs have risen year on year placing a huge financial burden on business and driving many manufacturing companies out of business.  In a volatile energy market there is no guarantee that costs will not rise even further, especially if the Middle East conflict continues to de-stabilise the region and the privatised and state EU-owned energy companies see the opportunity to raise prices even further.

Despite increases in taxation, expected improvements have not been seen in the transport infrastructure.  After ten years the present government has totally failed to even make a start on the integrated transport system our country so urgently needs.  This failure is a barrier to business and a constraint on productivity, growth and investment.  The loss to the economy is estimated to be £1.5 billion per year (see our Transport policy).

Other Popular Alliance solutions

Popular Alliance would reform and simplify the Payroll Tax System as in its present form it is costing business in the region of £2 billion per annum.  PAYE and N.I. would be simplified and the administration of student loans, maternity and paternity pay transferred to the Student Loan Company and the Inland Revenue and Customs respectively.

Popular Alliance would repeal the Health and Safety Act and replace it with sensible, legal guidance which would not be open to abuse.

Popular Alliance would set the level of business rates in proportion to the level of profit generated by each business, enabling small businesses to become more sustainable.

Popular Alliance would provide more facilities for further education, to ensure that the qualifications obtained by young people are suitable for, and understood by employers, and would encourage more co-operation between industry and colleges (see our Education policy).

Popular Alliance would provide more assistance in reducing energy and environmental costs (see our Energy policy).