King’s speech policies ‘fall short’ for small business, say trade groups

Policy announcements in the new Labour Government’s first King’s Speech “fell short” in supporting small firms across the UK to help drive economic growth, according to business groups.

Industry leaders said challenges facing small businesses were largely “overlooked” on Wednesday.

The criticism came after Sir Keir Starmer vowed to “fix the foundations of this nation for the long term” with a programme containing 40 proposed pieces of legislation.

He said his plan, which included sweeping planning reforms and changes to employment rights, would “unlock growth and take the brakes off Britain”.

Nevertheless, some business groups said more still needs to be done by the Government in order to accelerate growth across communities across the country.

Tina McKenzie, policy chair of the Federation of Small Businesses (FSB), said: “Today’s King’s Speech announcements fell short on the central challenge – getting growth back into the economy and ensuring wealth creation in every local community.

“Small businesses and the self-employed expected more on these, with their key issues instead overlooked.

“The Government’s 105-page briefing document doesn’t mention ‘small business’ once – suggesting Labour may not keep its promises to drive growth in the real economy.

“Apart from ambitious-sounding planning reform, there was no sign of delivery of the small business plan promised by Labour in opposition.”

Labour has previously indicated it would look to introduce legislation to address late payment of firms, an issue which has been heavily highlighted in recent years by small firms and the FSB.

Bea Montoya, UK chief operating officer at Simply Business, added: “The King’s Speech offered an opportunity for the new Government to deliver help for the UK’s five million small businesses and build on the pre-election signals to “pull up the shutters” for Britain’s entrepreneurs.

“However, it’s hard to detect much positive news for SMEs within the outlined proposals.

“Hopefully, more recognition for SMEs will emerge along with cast iron commitments to create conditions which will enable small businesses to thrive in the long term.”