Miliband outlines Labour plans to boost SMEs » SMEInsider

Miliband outlines Labour plans to boost SMEs

Labour Leader Ed Miliband has outlined his party’s plans for May’s election to boost prospects for small and medium sized businesses with tax breaks and financial assistance some of the key proposals.

Speaking at Jaguar Land Rover in Birmingham, Miliband pledged to deliver benefits for SMEs, having been previously criticised for a perceived anti-business approach in recent weeks.

Labour has said it would cut and freeze rates for 1.5 million small business properties with a ratable value of less than £50,000, Miliband added that SMEs would be “first in line for tax cuts”.

“The jobs of tomorrow will come from a large number of small businesses, not simply a small number of large ones. Our plan recognises that,” Miliband said.

 “We will have a fairer tax system, keeping corporation tax the lowest in the G7 for large businesses, but also cutting and freezing business rates for smaller ones.”

 “We will create a British Investment Bank, supported by a network of new regional banks and more competition in business banking on the high street, to help small businesses grow, and create a new Small Business Administration to co-ordinate work across government to help small businesses succeed,” he added.

  • The SME needs proper support and funding and this can be achieved in many ways; for example council’s right across the country own a number of properties / offices, units etc that are just empty and have been empty for many many months if not years. Why can’t the councils put these empty spaces to meaningful work for helping the SME learn to stand on its own two feet?

    The SME needs a chance to survive, and in time, with the “right kind of support” it will survive.

    A business in its embryonic stages needs just as much care, love and nurturing as a newly born baby, the councils right across the country are massively failing to see this and clearly are not a solution to the problem they are in many parts, part of the problem for stagnating the wheels of industry.

    Along with better lending practices from the banks, councils too have a significant role to play in the SME market if they truly wish to see prosperity and not austerity.

    They too, need to nurture and bring “parenting skills” into the business and do whatever it takes to ensure that the embryonic business develops into a self sufficient organisation that can offer jobs etc.

    Councils can do a lot, lot more than what they currently are doing, which appears to be very little. An SME needs a minimum of 3-5 years to grow into a fully developed self sufficient company and I genuinely believe that, this type of plan of action will add growth to the economy.

    The SME from day one is faced with overcoming many overhead hurdles, if the banks will not lend “because of their completely out of touch attitude towards SME business”, then in order to give Capitalism a type of much needed reform, the local authorities can give themselves the opportunity to breathe new life into their communities by giving viable embryonic companies the space, shop, office, unit, etc; that they own and are empty.

    Rental should be wavered until the company can begin to show sustainable pre- tax profits. This is nurturing, this is building, this is fair trading for the SME who needs that boost in order to survive.

    Along with that government pressure should also be placed on the banks to ensure that viable businesses are not rejected and ejected by them, they too are a huge contribution towards the SME’s economic failure.

    Growth is not measured by how much money an SME has in their bank account from day one, growth is measured by the amount of effort put into ensuring that the SME does not fail.

    An analogy for the banks current lending practice is one of two things which are:

    1] They will not financially help the SME full stop!

    2] They will lend just enough to put up four walls but, will not give the SME the rest of the finance to place the roof on top of the four walls.

    What is the point of lending. Mr. Millarband has much to do if he wants to win the hearts and minds of the SME.