Responding to the Shadow Chancellor Anneliese Dodds’ speech at Labour Connected this morning, Federation of Small Businesses (FSB) National Chairman Mike Cherry, said:
“It’s encouraging to hear the Opposition pledging to work hand in hand with small businesses at this incredibly difficult juncture. The Shadow Chancellor is absolutely right to call on government to rule out any tax rises in the immediate future – any hikes would seriously stifle our nascent economic recovery.
“We very much welcome the Shadow Chancellor’s discussion of proposals for a business rebuilding programme. Firms will undoubtedly struggle with debt over the coming months and we need meaningful government action to help viable firms with that burden.
“An approach to bounce back loans akin to the student loan model – where firms start making repayments once they’re turning a profit – would give businesses the confidence they need to invest, hire and innovate today, rather than tomorrow when such efforts may prove too little too late.
“The emphasis placed on responsible public procurement is very welcome. Too often small firms find themselves locked out of public procurement processes, or suffering from late payment if they do find a way in to supply chains.
“Where there is time to plan, we absolutely agree that government support should be carefully targeted so it reaches those most in need. However, it’s important to remember that the need for speed has rightly shaped the design of emergency schemes to date, and will continue to do so in the near future.
“A lot of the biggest issues facing us are comprehensive and affect the whole small business community, so excluding groups is not the right way forward. It would have been good to hear more acknowledgement today of the thousands of company directors and sole traders that have received no income support during this crisis, despite dutifully paying taxes for years.
“The job retention scheme, bounce back loan initiative, small business cash grants, self-employment income support scheme, sick pay rebates and tax deferrals have all done so much to help ultimately viable small businesses keep their heads above water and continue making an economic contribution. We are speaking with policymakers about what the next phase of support should look like.
“The Opposition is right to address the necessary transition to net zero. We have to ensure that transition works for businesses of all sizes. We’ll be bringing forward proposals in this space in the coming weeks.”
Ends
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