Small business owners and trade bodies put their concerns directly to Treasury minister Dan Tomlinson MP at an SME4Labour breakfast roundtable in London on Monday 19 October.
Tomlinson, the Exchequer Secretary to the Treasury and Minister for Growth, joined Feryal Clark MP for a discussion at Troia Southbank ahead of the Budget. Participants described the combined pressure of business rates, rent and energy bills, while asking how government plans could help smaller firms invest and grow.
Tomlinson argued that sustained growth and stronger investment were essential to improving living standards. But the conversation repeatedly returned to a practical question for the businesses in the room: when would national economic ambitions make a difference to their costs and opportunities?
Late payments were a particular concern. Tomlinson discussed the government's proposed reforms, including a maximum 60-day payment term and mandatory interest when payments are late. He described their potential impact as "an absolutely massive change for small businesses". The measures are part of legislation progressing through Parliament.
Access to finance was another priority. Tomlinson pointed to the Growth Guarantee Scheme and the British Business Bank as routes to help firms secure funding to start, invest and expand. The discussion also considered how smaller businesses could make useful use of AI and other technology when they have limited time and resources to spare.
On business rates, participants described the pressures facing restaurants, shops, pharmacies and other high street firms. They questioned whether a property-based tax adequately reflects a business's ability to pay and raised the competitive gap between high street premises and large online operators.
Tomlinson discussed the lower business rates multipliers introduced for eligible retail, hospitality and leisure properties, as well as transitional support. The roundtable also covered action on overseas VAT non-compliance and the treatment of low-value imports. Businesses that believe their rateable value is wrong were encouraged to use the formal check, challenge and appeal process.
Opening up public contracts
The difficulty of competing for public contracts was another major theme. Smaller suppliers can struggle with the time and resources needed to navigate procurement processes, even when they have the skills to deliver the work.
Clark emphasised the need to give SMEs a fair chance to get a foot in the door. Tomlinson said departments were working to improve opportunities for British businesses, including by considering how contract requirements and decisions made early in the procurement process affect smaller bidders. The discussion also covered the role of social value in supporting jobs and wider economic benefits.
Participants asked how devolution could bring investment and decisions closer to local economies without creating inconsistent rules for businesses operating across different regions. Tomlinson said mayors should have stronger tools to support growth and major projects, with further detail expected in the government's Rewiring the State White Paper. He acknowledged the need for proportionate regulation and national consistency where appropriate.
Closing the discussion, Clark asked how small businesses could ensure their experience shapes Treasury decisions. Tomlinson encouraged firms to provide concrete examples of rules that impose unreasonable burdens and highlighted the role of SME4Labour in bringing businesses into direct conversation with policymakers.
The roundtable gave businesses an opportunity to test the government's growth plans against the pressures they face each day. Their message was clear: access to finance and contracts matters, but so does relief from costs and late payments that restrict their ability to invest, employ and grow.
