Labour and Conservatives pledge to ease burden on small business

With the election less than a month away, Labour leader Jeremy Corbyn has announced that his party will prioritise late payments and business rates in a bid to ease the regulatory burden on small business.

His move was immediately applauded by the Federation of Small Businesses (FSB) national chairman Mike Cherry, who explained that the late payment crisis remains the biggest scourge afflicting the UK’s small business community.

“It destroys 50,000 firms a year at a cost of at least £2.5 billion to the economy,” said Mr Cherry.

“The Labour Party’s commitment to putting this crisis to bed for good is encouraging, and we look forward to seeing exactly how they intend to go about doing so.”

The Conservative government has also pledged to simplify procedures for small businesses by properly empowering a new Small Business Commissioner and banning late payers from all public sector procurement opportunities.

Commitments to reducing the business rates burden, upping infrastructure investment and improving access to finance for small firms have also been floated.

“Cutting the jobs tax is a strong, pro-small business move, as it will help half a million small firms raise wages and keep more people in work,” said Mr Cherry.

He explained that small businesses need to be removed from the burden of “outdated, regressive tax” that charges small firms before they make £1 in profit.

“Small businesses – and their staff – will be relieved to see the issues that matter to their livelihoods placed firmly on the agenda at this election,” Mr Cherry confirmed.

“These measures lay down a gauntlet to other parties, and we hope there will be more to come at this election.”