Prime Minister Andy Burnham has pledged to build a new partnership with Britain’s small businesses, declaring that local firms are the “beating heart” of communities and signalling that further support could be announced at the Government’s first Budget.
As part of his summer tour of the country, Burnham is meeting small business owners to hear directly about the pressures they face and what the Government can do to give firms greater confidence to invest, expand and create jobs.
The Prime Minister’s visit to Devon comes after his Government announced a 20 per cent reduction in business rates for pubs, social clubs and live music venues — one of Burnham’s first major interventions since entering Downing Street.
Burnham said:
“Local businesses are the beating heart of our communities, bringing life to the places we call home.
“We are helping pubs, social clubs and live music venues by cutting their business rates, but I’ve always said there is more to do.
“I’m listening to small business owners so we can work together to deliver jobs and growth in every postcode.”
The intervention is another indication that supporting high streets, hospitality and independent businesses will be a central part of the new Labour Government’s economic agenda.
Ibrahim Dogus, Chair of SME4Labour, welcomed the Prime Minister’s focus on small businesses and called for the dialogue with entrepreneurs to translate into further action.
Dogus said:
“It is hugely encouraging to see the Prime Minister putting small businesses at the heart of the Government’s plans for growth. SMEs are the backbone of our economy and the beating heart of our high streets and communities. They create jobs, train young people and keep money circulating in local economies.
“The decision to cut business rates for pubs, social clubs and live music venues is an important first step, and Andy Burnham is right to say there is more to do. Businesses need a government that listens to them and understands the pressures they face, from business rates and energy costs to VAT and the wider cost of doing business.
“At SME4Labour, we look forward to working constructively with the Prime Minister and the Government to make sure the voices of small business owners are heard and that the coming Budget gives entrepreneurs the confidence to invest, grow and create good jobs in every part of the country.”
Burnham has already suggested that the Government could go further on business rates when Chancellor John Healey delivers the Budget on 28 October.
The Prime Minister has indicated that ministers intend to examine the burden of business rates across the high street more broadly, alongside measures aimed at reducing costs for businesses and households.
The comments will raise hopes among small business owners who have long argued that the existing business rates system places disproportionate pressure on bricks-and-mortar firms at a time when businesses are also dealing with higher wages, energy bills and other operating costs.
Hospitality leaders have also welcomed Burnham’s decision to engage directly with businesses, highlighting the sector’s potential to create jobs, tackle youth unemployment and support coastal and rural economies.
The Government’s initial business rates reduction has been welcomed across parts of the hospitality and leisure sectors, while industry campaigners continue to press ministers for wider reform and further measures to reduce the cost of doing business.
Burnham’s message that there is “more to do” will therefore put further attention on the October Budget, with small businesses looking to the Government for measures that can help revive high streets, encourage investment and support employment in communities across the country.
