Election 2024: SMEs ‘yet to be convinced’ whether Labour or Conservatives will boost business
Britain’s small and medium-sized enterprises (SMEs) have become divided on what a change in government could mean for the future of their businesses ahead of the general election on 4 July, according to data shared exclusively with City PM.
A survey conducted on behalf of accountancy and business advisory firm Xeinadin highlighted that 41 per cent of SMEs think a change in government will have “little” impact on small business growth within their area.
Some 26 per cent of the 1,000 UK SME respondents surveyed, however, expressed hope that an incoming government could “bring the spark back” to Britain’s entrepreneurial community.
The data shows a close divide among respondents, with other key points expressing concern on whether business owners will bring their “personal” or “business” views to the polls this summer.
Wasim Riley, director of Manchester-based restaurant Afrikana Kitchen, said while his personal and business views are “somewhat similar”, he lacks confidence in the thought of a potential change in government giving a boost to Britain’s SMEs.
I want to believe that it will help, but I can’t say I am confident.
SMEs are struggling, and regardless of who’s in power, we need more support and we need to be heard.
Wasim Riley
David Standing, chief executive of wellness business The Slimming Clinic, however, said a change in government is “highly unlikely” to benefit his business.
“The Slimming Clinic is aligned to tackle one of the biggest issues facing the NHS and indeed productivity in the UK – obesity,” Standing added.
“I have no confidence that a new government will see clearer thinking around using private organisations to have a positive effect on this issue.”
So, what are the parties offering?
A race to win the votes of Britain’s small businesses has been well underway as the general election approaches.
The Labour party had announced its plan for small businesses just this past weekend, with proposals including the replacement of the business rates system, access to banking services and boosting exports.
So far, the Conservative party has vowed to avoid increases to capital gains tax, corporation tax and income tax, alongside other various investment and late payment pledges presented in the Spring Budget 2024.
Its manifesto, which was launched earlier today, unveiled a £4.3bn business rate support package to “support small businesses and the high street” as well as other investment and capital lending incentives for SMEs.
The Liberal Democrats have also joined in on the race for the business vote, with its the launch of its manifesto yesterday vowing to “make Britain one of the most attractive places in the world for businesses to invest.”
Hugh Viney, founder and chief executive of Minerva’s Virtual, however, said he is “yet to be convinced” that the future for SMEs is promising in either government’s hands.
“What this country desperately needs is economic growth, and the next government needs to recognise that SMEs have an integral part to play in a growing economy,” he added.
Viney said he is “undecided” on who to vote for personally in the upcoming election, but expressed that he is “likely” to vote for the party that aligns with the best interest and future of his business.
Tim Halford, chief commercial officer at Xeinadin, said: “Business leaders are under a lot of strain – be that a legacy of the pandemic, Brexit, or rising energy costs that are crippling businesses up and down the country – and they welcome fresh ideas.
“Whichever party is in power come July, it is time for politicians to start prioritising the businesses that form the backbone of this country.”