‘From kitchen tables to high streets: why Labour must champion small businesses’

The Small Business Plan, unveiled last week, marks a major milestone, putting the needs of Britain’s 5.5 million small and medium-sized enterprises (SMEs) at the heart of the national economic agenda. The plan is a welcome recognition that small businesses are the backbone of Britain’s economy, and supporting them is absolutely critical for delivering our Growth Mission.

SMEs employ 60% of the country’s workforce and generate £2.8 trillion in turnover. They power our towns and cities, sustain our communities, and drive the innovation and entrepreneurship that can deliver the inclusive growth Britain craves. We know that growth powered by SMEs is good growth, supporting better job creation, and delivering investment in communities right across the country. In a world where AI is transforming the economy before our eyes, it will be small businesses that have the flexibility to adapt quickly, and who can innovate to compete.

The Tories have long abandoned their claim to be “the party of enterprise”, their years in government characterised by Johnson’s “F**k Business” and Sunak abandoning millions of self-employed people during the pandemic. They failed to create the climate for business to thrive and our economy to grow, and we have had to pick up their mess and rebuild our economy.

READ MORE: ‘Labour must soar past Britain’s blockers and build a runway to growth’

We have done so much already to set us on that path towards growth and we now have an opportunity to show that Labour is the true party of small business. Cracking down on late payments will rebalance the power dynamic between SMEs and their large corporate customers, who often treat small suppliers as interest-free banks taking months to settle their bills. Making it easier for empty shops to be redeveloped into cafés, bars and venues, will help to breathe life back into our high streets and restore pride in our communities.

But this must only be the beginning. If we want SMEs to deliver the growth and innovation Britain needs, Labour must build an ongoing partnership with small business,  not just in Whitehall, but in towns and cities across the country, ensuring support for small businesses is not an afterthought but at the very heart of our economic vision.

We must find better ways of engagement and see small businesses not as stakeholders to consult occasionally, but as true partners in shaping the future. We can do this in Government through their representative groups, trade bodies and professional bodies, but we must also do more as a party.

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As one of Labour’s affiliated socialist societies, Labour Business is on a mission to ensure that the voice of small businesses, the self‑employed and freelancers is heard loud and clear within our party structures and democratic processes. These workers now make up an ever-growing part of the modern workforce,  from creative industries to tech, from delivery drivers to designers, and their working experiences, challenges and ambitions must be represented.

Labour must be the party for all parts of the economy, the party for all workers, whether they clock in at a factory, deliver public services, serve customers on the high street, or run a business from their kitchen table.

So, Labour Business will continue to build bridges between businesses and the party and champion their concerns. We know there is much more to do to connect and listen to the experiences of businesses in our constituencies, and to give our self employed members, and those that work in small businesses a stronger voice.

The measures announced make that mission a whole lot easier. If you want to help, join us.

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