The appointment of Andy Burnham as Labour leader and the UK’s next Prime Minister has raised hopes of a more supportive environment for small businesses, according to Bibby Financial Services.
Derek Ryan, chief executive for North West Europe at Bibby Financial Services, says SMEs would welcome signs that the new Prime Minister intends to prioritise local economies, but warned that meaningful reform would be needed if businesses are to regain the confidence to invest.
Ryan says: “Andy Burnham’s positive noises about rebalancing business rates will be welcomed by smaller high street retailers and SMEs.
“But we know from our own research that business rates cripple small businesses across sectors. This policy initiative needs to go further if the new Prime Minister is serious about delivering on his promise to create ‘good growth in every postcode’.
“Last year’s increase in NI contributions halted many SME leaders’ investment and growth plans in their tracks, so the proposal to lower this tax would clearly make a significant positive difference. But the devil will be in the detail – not least the views of any new Chancellor. And who Mr Burnham picks as his new Chancellor, matters hugely because stability, not radical change, is what businesses need to invest with confidence.”
Bibby says the comments reflect growing calls from the SME community for policies that improve business confidence, reduce operating costs and encourage investment, particularly following a prolonged period of economic uncertainty.
The invoice finance provider added that smaller businesses will be watching closely to see how the new administration translates its rhetoric on regional growth into practical measures that support employers, high streets and local economies.
