Labour pledges to support small businesses by lifting barriers

Labour has promised to “pull up the shutters” for small businesses and entrepreneurs if it is elected in the UK general election. On Friday, the party announced plans to overhaul the business rates system to support High Street shops and crack down on the late payment of invoices.

Labour leader Sir Keir Starmer emphasized the need to support hard-working small businesses that have been held back. The party’s proposal, first introduced in November, has received praise from trade bodies for its focus on reforming the business rates system.

However, it remains unclear what Labour would replace business rates with. The party has also committed to tackling late payment issues by forcing large businesses to report on their payment practices through new legislation. Additionally, Labour aims to revitalize High Streets by addressing antisocial behavior.

Tina McKenzie, policy chair at the Federation of Small Businesses (FSB), welcomed Labour’s attention to late payment issues, noting that more than half of small businesses surveyed in 2022 had experienced late payments in the previous three months.

In response to Labour’s plans, Business Minister Kevin Hollinrake highlighted the Conservative government’s support for small businesses during the pandemic, such as freezing business rates for hospitality venues. The SNP’s economy spokesperson Drew Hendry criticized Labour’s proposals as “empty promises” for Scottish small business owners, calling for the removal of Brexit-related obstacles.

Meanwhile, the Liberal Democrats also expressed disappointment in the Conservative party’s track record with business owners and indicated their intention to overhaul the business rates system.