Small businesses give new ministers wish list

After the 7 February reshuffle in government, the Federation of Small Businesses has set out its wish list for new ministers to support the survival of small businesses across the country.

The list of priorities for each new minister to deliver for growth and productivity in small businesses has been highlighted by FSB to new departments and ministers.

The former Department for Business, Energy and Industrial Strategy (BEIS) was replaced by three departments: for Business and Trade with Kemi Badenoch appointed as the Secretary of State; for Science, Innovation and Technology headed up by Michelle Donelan; and the third for Energy, Security and Net Zero with former Business Secretary Grant Shapps taking the lead ministerial appointment. FSB also set out day one priorities for the Department for Culture Media and Sport as a new Secretary of State Lucy Frazer was appointed in the reshuffle.

Tina McKenzie, FSB’s policy and advocacy chair, said these changes can help drive action that will help propel UK productivity and put small businesses at the front and centre of ministers’ minds when making economic decisions.

“The key for ministers new in roles, and for new departments, will be delivering on day one. Small business priorities are clear, and we look forward to working with new Ministers to deliver change that’s felt on the ground today,” she said.

FSB said that the new Department for Business and Trade should deliver swift action on late payment to small firms — a scourge that forces 50,000 small businesses to close each year. Another in-tray item is to deliver on making trade deals abroad work for small businesses and applying the British Columbia model of regulatory reform to domestic regulation to reduce the paperwork small businesses are faced with. To grow the economy, there should be a renewed focus on entrepreneurship including a target to grow the number of disabled entrepreneurs by 100,000 by 2025.   

Entrepreneurship is the route to a strong economy and enabling innovation in SMEs should be a key priority according to FSB. It calls on the new Department for Science, Innovation and Technology to reverse the recent “anti-enterprise anti-challenger bias in UK innovation policy” of slashing R&D tax credits. There should also be reform of the funding structures for innovation such as through the Innovate UK and UK Research and Innovation (UKRI) channels.

The Department for Energy, Security and Net Zero should create a new ‘Help to Green’ programme to promote net-zero investments that help small firms save on energy; provide proper protection to microbusinesses in the energy market including establishing a new 14-day cooling-off period; and make sure the most vulnerable businesses are able to renegotiate or ‘blend and extend’ their energy contracts following the upheaval in prices this year.

The Department for Culture, Media and Sport should focus on small venues and other businesses hard hit by the pandemic and make sure self-employed creatives are central to policy development; deliver the broadband businesses need now and get rid of the mobile notspots that blight businesses’ ability to operate in some of our most in need communities; and help make sport and exercise a reality for all including by making sure cycle to work is available to the self-employed.