This October large UK firms will begin the process of ensuring all eligible employees automatically become members of a qualifying pension scheme.
When asked whether he was in favour of putting back the staging date for smaller firms, Davis told PLANSPONSOR that he was supportive of moves to save employers money.
Speaking at an event organised by the Institute of Chartered
Accountant of England & Wales in London yesterday (3 September 2012), Davis
referred to the UK’s 4.5m small and medium size enterprises as the creators of
the vast majority of UK employment.
“The Budget still looks at the big companies,” he said. “They have
got the biggest factories. They go on trips with the Prime Minister and sign
huge contracts and make fantastic headlines.
“The real action is in the 4.5m small and medium sized companies
(SMEs) that create the vast majority of employment in this country.”
The one-time Tory leadership favourite added large companies emphasis
efficiency but for SMEs the target is exponential growth.
“In my time working for a FTSE 100, we always increased the
revenue and profits for pretty much every year but most of the time we actually
ended up employing fewer people because we were on a continual drive for
efficiency,” he added.
“There’s nothing wrong in that. It made us more competitive but it
didn’t create new jobs.”
And Davis warned overregulation could prove SMEs ability to create
He said: “The value of small businesses is they create jobs and
wealth. The problem is they are also much more fragile than big companies.
“If they succeed their growth rates are astronomical but the very
small companies can be killed off by a single employment tribunal case.
all we need to liberate that sector to create jobs and wealth and the biggest
growth killer in modern economies is regulation.”