Question: What is the Federation of Small Businesses?

Carol Undy: We are the UK's largest business representation organisation. 

We will shortly pass the 200,000 figure for membership, which puts us on the same level as the major political parties and at about the same membership as the CBI, BCC, EEF and FPB combined. 

We were formed in 1974 and we represent business with under 250 employees, with our average member employing four people. 

Our members services include a free legal helpline, which is our most popular service as the membership fee tends to pay for itself as this helpline ensures members avoid legal pitfalls that could otherwise be very costly. 

We also lobby in Westminster on behalf of the 4.3 million small firms in the UK and their 12 million employees, at the devolved bodies and at regional and local level through a network of branches and offices.

Question: What do the FSB's 200,000 business members see as the key issues for politicians to address in the new parliamentary session?

Carol Undy: Our biennial survey 'Lifting the barriers to growth' received just short of 20,000 responses from small business members. 

It is the largest survey of its kind in the UK.  It found that red tape, crime, and skills were the largest barriers to growth for small businesses. 

When you consider that between 2000 and 2004 large businesses lost 1.5 million jobs but that small businesses more than picked up the slack by creating two million jobs it is obviously vital to ensure that small firms have the right climate to continue that growth into the future. 

Other issues such as business rates, tax, business support, and transport also need to be more closely examined to lift the weight from the shoulders of small employers to allow them to create more opportunities for people to work. 

A good example is that the average small business owner spends 28 hours per month filling in forms.

That is almost four average working days where the owner is not going out finding more customers, growing the business and seeking more staff.

The burden of employment regulations in particular are acting as a disincentive to hire more people and this is not in the interests of employers or employees.

A lighter regulatory touch would still protect workers without making businesses think twice about hiring.

When we're competing with the likes of India and China this is really holding us back.

Another serious concern, in the run-up to Christmas, is that Sir Michael Lyons' review of local government finance in December may propose restoring business rate-setting to local government control.

Question: If Sir Michael Lyons is going to recommend that local authorities regain control of business rates, why would you not support that?

Carol Undy: In the 1980s some councils took it as a badge of honour that they were hammering businesses.

That extreme may now, more or less, have passed but businesses do not have a vote and so councils would find it much easier to hit firms with tax increases than the voters via the already unpopular council tax.

If a business were to go bust or move elsewhere the employees would blame the boss not the council.

So it's obvious that a local authority in a dire financial situation would hit businesses before hiking up the council tax.

You also have the strange and unfair situation that competing businesses, who may be only a few miles apart, are taxed at completely different levels.

One would be given an unfair advantage over the other for no other reason than geography. 

With a fragile economy at present, doing something as illogical as that could put jobs at risk for no good reason.

Question: So what will you be doing about it?

Carol Undy: We have launched a campaign to get small businesses to sign our petition, which we will hand in to Sir Michael, demanding that setting business rates remains in the control of the government.

Restoring local control of the level of business rates and going back to the dark days of the 1980s would be a retrograde step for employers and we have to head this off at the pass before it is even considered by the government.

Anyone who wishes to sign the petition, and who currently pays business rates, can contact the FSB at london.policy@fsb.org.uk to request a copy of the petition. 

Or they can contact their regional office as they also have copies and would love to hear from you.  You can find them at www.fsb.org.uk/regions.