Labour promises to “open doors” for small businesses

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

Labour leader Sir Keir Starmer emphasized that “hard-working small businesses have been held back” and that it is time to support them. The party first introduced its plan to support Britain’s small businesses back in November, drawing praise from trade bodies for its proposals around the business rates system.

While it is not immediately clear what Labour would replace business rates with, the party has reiterated its commitment to stamping out late payment of invoices by forcing large businesses to report on their payment practices through new legislation. Additionally, Labour aims to revitalize High Streets by cracking down on antisocial behavior.

Tina McKenzie, policy chair at the Federation of Small Businesses (FSB), commended Labour for addressing late payment issues and expressed interest in seeing the party’s pro-small business approach in its manifesto launch.

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

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 as well.