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Enterprise Nation boss Emma Jones says political parties must prioritize small businesses
The dust may not have had much time to settle on the party’s manifestos, but small businesses have already realised that they will have to do much of the heavy lifting required to pay for them.
With economic growth and wealth creators front and center in major party appeals, the UK’s community of freelancers, startups and small businesses are keen to vote for the party they believe will provide the solution to the economy at its most important point. at the top of their priority list.
All the main promises are already there, in neon lights. But what we all want to know is if any of them have a whiff of prosperity.
Enterprise Nation hosted a debate to ensure small businesses heard the respective policies and plans of the major parties.
In front of an audience of 500 business people, we welcomed the Minister of State at the Department of Business and Trade, Kevin Hollinrake, MP for the Conservative Party, the Shadow Secretary of State for Business and Trade, Jonathan Reynolds, for the Labor Party, and Sarah Olney. Spokesman for the Treasury and Business and Industrial Strategy of the Liberal Democrats.
They calmly set out their small business position on key issues such as late payment, taxes, the VAT threshold and planning legislation.
What do the parties offer to small businesses?
A message came clearly. Everyone recognizes that the small business vote is worth fighting for. And they are right to do so.
Entrepreneurship is a powerful and growing constituency, and a classic swing voter to boot. Official figures put the number of small businesses at 5.5 million, employing 13 million people.
If we add to that the startups, the side hustlers and those with entrepreneurial ambition, we will have a very good reason to present favorable promises that will go down well with the country’s entrepreneurs.
There is also another reason why small businesses should be at the top of all manifestos.
A thriving small business sector is a catalyst not only for economic growth but also for a more prosperous, resilient and inclusive society.
Small businesses innovate more, create better quality jobs and boost their local economy in real terms, every day.
How will small businesses be taxed?
What was the biggest debate of the night? Probably because of the tax issue.
Hollinrake boasted that the UK has maintained one of the most generous corporate investment tax relief policies in the OECD and warned against raising capital gains tax (CGT), arguing it would harm investment attractiveness. UK international.
When asked about business taxes such as national insurance, corporation tax and capital gains tax, Reynolds said Labor was clear that any additional revenue raised in its manifesto would be mortgaged for specific purposes, not just for general financing.
Reynolds emphasized that when revenue needs to be raised, it will be done through targeted measures rather than blanket tax increases on businesses or individuals. And he did rule out CGT increases, which was well received in the room.
Olney proposed reintroducing the indexation subsidy for CGT and replacing the business rates system with a tax on commercial landlords, taxing the annual rental value of land rather than business income or profits based on property value .
From Labor and the Liberal Democrats there was consensus to resolve the controversial VAT threshold. Sarah Olney proposed a review of the threshold level and its calculation mechanism to ensure it encourages continued business growth rather than acting as a barrier.
Jonathan Reynolds ruled out raising the £95,000 threshold and instead of putting a figure on it, argued for easing the “cliff” rather than simply raising it further and further up.
Hollinrake’s response was to point to tax reliefs (SEIS, EIS, Venture Capital Trust and commercial property reliefs) as efficient conservative mechanisms that support investment.
Prioritize small businesses for growth
If the parties get this right and the next government presses ahead with supporting small businesses with the enthusiasm shown in the debate, they will pave the way for healthy and innovative local economies and, most importantly, will be able to afford part of the other important things on your list.
The next government should think about measures to support small business owners as commitments that support families, communities and society at large. When small businesses do well, our towns, cities and high streets prosper.
To get to where we need to be in terms of growth, we first have to get a few key things right.
A thoughtful, adult approach is more likely to win their hearts and minds than tricks.
First, we must create the right conditions and an enriching culture in which entrepreneurs are celebrated and supported at all times to turn their innovation into commercial success.
There is no doubt that technology will underpin the UK’s long-term economic prosperity – if we are to see growth, we need to address the disappointing digital performance of UK SMEs to be more in line with the rest of the G7.
We can do this by introducing some consistency and centralization into business support, creating businesses that know where they are going and how they will get there.
This could also contain resources that could help build resilience. Today, entrepreneurs often have to take exhausting and costly measures to stay put. If they had access to available enterprise support, they could fly.
While our debate may not have registered on the Richter scale like the Prime Minister’s television debates, it did demonstrate how important the small business vote will be and that a thoughtful, adult approach is more likely to win their hearts and minds than the tricks.
Emma Jones is the founder of Enterprise Nation, a support platform that has helped 700,000 people start and grow their small businesses.
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