Introduction
As a concerned UK citizen, I am writing to propose a policy that would align Companies House fees for online and paper submissions, generating significant additional revenue to support affordable transport for workers in low-income, low-productivity areas.
Background & Issue
Currently, Companies House charges different fees for paper and online submissions. For example, the annual confirmation statement fee is £62 for paper filings but only £34 for online filings (Companies House, 2023). With approximately 4 million businesses filing online, aligning the online fee to match the paper fee could generate an estimated £112 million annually.
At the same time, many low-income workers in economically struggling areas face significant transport costs, creating barriers to employment and economic participation. For instance, Scarborough, one of the UK’s most deprived areas, has a productivity rate 25% below the national average (ONS, 2023). Transport costs account for a significant portion of low-income households’ expenses, with the poorest 10% of households spending 28% of their income on transport (Department for Transport, 2022). Providing affordable or free bus tickets for those returning to work would remove a major obstacle for job seekers in these areas.
Proposed Policy Solution
This policy would align the Companies House confirmation statement fee—and other relevant fees—for online filings with those for paper filings. To ensure fairness for small businesses and startups, micro-enterprises (businesses with fewer than 10 employees) would be exempt from the increased fees. The additional revenue raised (circa £112 million annually) would be ring-fenced to fund subsidised or free bus tickets for people returning to work in low-income, low-productivity areas, as defined by the Index of Multiple Deprivation (IMD).
To ensure transparency, a dedicated website would publicly list the areas benefiting from this scheme, the amount of funding allocated, and the transport services supported. This ensures that businesses contributing to the higher fees can clearly see how their payments directly support front-line services and local economic development.
Additional Considerations
- Pilot Scheme: A pilot scheme could be launched in one or two low-income areas, such as Scarborough or Blackpool, to test the policy’s effectiveness before nationwide implementation.
- Integration with Existing Schemes: The policy could complement existing initiatives, such as the Bus Fare Cap Grant or Jobcentre Plus Travel Discount Cards, to maximise its impact.
- Stakeholder Engagement: Consult with key stakeholders, including business groups (e.g., Federation of Small Businesses), transport operators, and local authorities, to ensure the policy is balanced and practical.
- Long-Term Sustainability: Savings from reduced unemployment benefits, resulting from improved access to employment, could be reinvested into the transport fund to ensure its long-term sustainability.
Benefits of the Proposal
- Fairer Fee Structure: Companies House charges would no longer favour online submissions over paper ones, ensuring consistent revenue while protecting small businesses.
- Support for Employment: Affordable transport would make it easier for job seekers to access employment opportunities, particularly in economically struggling areas. For example, free bus travel for young people in Greater Manchester has increased access to education and employment (Transport for Greater Manchester, 2023).
- Public Transparency: Clear tracking of revenue and spending would build public trust, showing that funds raised go directly to front-line services.
- Economic Regeneration: By improving access to jobs, the policy would support economic regeneration in deprived areas, boosting productivity and reducing regional inequalities.
Call to Action
I urge you to consider this proposal seriously and explore its feasibility as part of the government’s strategy to support economic regeneration and employment in deprived areas. I would welcome the opportunity to discuss this policy further and would appreciate your response outlining your views and next steps.
Closing
Thank you for your time and consideration. I look forward to your response.
References
- Companies House (2023) Fees for using Companies House. Available at: www.gov.uk/companies-house-fees (Accessed: 10 October 2023).
- Department for Transport (2022) Transport Affordability Statistics. Available at: www.gov.uk/dft-statistics (Accessed: 10 October 2023).
- Office for National Statistics (2023) Regional Productivity Data. Available at: www.ons.gov.uk (Accessed: 10 October 2023).
- Transport for Greater Manchester (2023) Impact of Free Bus Travel for Young People. Available at: www.tfgm.com (Accessed: 10 October 2023).