General Election Results and Small Businesses

Labour in the lead - what does the election result mean for small businesses? 

Whilst I don't claim to be a pro when it comes to politics, I do know how important policies are when it comes to small businesses and think it's an important conversation to have in a world where they're struggling to start up, let alone survive. 

Southend West and Leigh appointed its first Labour MP in history this year and its had me thinking a lot about how it's clearly time for change for so many people. This year seemed to be a pivotal time for that. 

Most small businesses "fail" in the first five years - 20% in year one, another 30% by year five (www.entrepeneur.com) - but this year's Labour Party have big promises in their manifesto that could help change this... providing they follow through. 

From changes to energy supply, taxes, business rates, and how the system works in general, it's looking as though small businesses are a priority on their agenda as opposed to the previous government.

The last few years have seen increasing tax, broken promises to reduce business rates, and botched trade deals which has meant a great number of small businesses haven't had the up front capital to get by or means to continue, closing their doors for good. Is now the time for serious change? 

In their manifesto, Labour have promised to: 

- Open up competition to public contracts giving small businesses a fairer chance 

- Stamp out late payment of invoices to small businesses, requiring large businesses to better report on their practices to expose late payments 

- Make the UK the best place to start-up and scale-up by unlocking the supply of finance for businesses to grow

- Replace the business rates system with a system that levels out the playing field between smaller businesses and online giants 

- Make Britain a Clean Energy Superpower, cutting bills for small businesses 

(www.labour.org.uk) 

If all of these promises come into fruition it could give existing small businesses a breath of fresh air, space to grow, and will mean seeing more independents on your high street.

At the moment it's very difficult for small businesses to secure bigger contracts because we are not given the opportunity to do so, opening up the competition to businesses beyond the usual giants will allow us to showcase our skills, products, services and talent. 

As it stands, any property that is non-domestic is subject to paying businesses rates (shops, offices, pubs, factories, etc). This is regardless of size and regardless of income. Naturally, for corporation giants raking in millions upon millions of pounds per year, paying business rates for their properties is done with ease and will barely touch pennies in pockets.

For smaller businesses just making enough to scrape by, especially in those all-important first few years of existing, business rates can be crippling and mean the difference between success and failure. Adjusting the system to make business rate payments proportional to income, or nullifying the cost at all for so many years on establishing, would give small businesses a fairer playing ground for setting up, scaling up, and succeeding. 

There is so much that needs to be done, issues to be fixed, and policies that need to change in this country. Small Business changes are but a drop in the ocean, I know... for people like me though, and so many others we all know and love, policies promised and actioned are what will make or break us. 

Let's see what happens! But hopefully, fingers crossed, now is the time for change...