Labour pledges support for small businesses, plans overhaul of business rates

Labour initially proposed its plan to revitalize Britain’s high streets in April, which received positive feedback from trade bodies

As the general election campaign continues, Labour is set to introduce a series of policies aimed at supporting small businesses.

On Saturday, Sir Keir Starmer, alongside shadow chancellor Rachel Reeves and other shadow cabinet ministers, is expected to unveil the party’s plans for the sector.

Key proposals include an overhaul of the business rates system to enable high street shops to compete with online giants and ensure access to high street banking services by accelerating the establishment of banking hubs.

Labour will also commit to addressing the issue of late payment of invoices by requiring large businesses to disclose their payment practices and “revitalise” high streets by tackling antisocial behaviour.

Sir Keir described small businesses as “the beating heart of driving growth and creating jobs for local people.”

He criticised the Conservative government, claiming that their governance over the past 14 years has inflicted “a deep and lasting cost on small business owners through economic instability and sky-rocketing energy bills.”

“Through no fault of their own, hard-working small businesses have been held back by a tired Tory party that has failed to provide the stability and certainty business needs to thrive,” he said, as quoted by Independent.

Labour initially proposed its plan to revitalize Britain’s high streets in April, which received positive feedback from trade bodies, particularly for the proposed overhaul of the business rates system.

However, there remains uncertainty about what Labour would use to replace business rates.

Paul Rees, Chief Executive of the National Pharmacy Association (NPA), welcomed Labour's small business plans.

"Pharmacies are at the heart of high streets across the country and employ up to 100,000 people, making a significant contribution to local economies.

"It's positive to see proposals to move some of the business rates burden away from smaller businesses. Anything that reduces the pressure on pharmacies is a move in the right direction given that they face huge financial challenges, with ten pharmacies closing a week so far this year,” he said.

The association has called on all parties in the upcoming election to commit to reversing “historic cuts” to pharmacies, enabling them to expand and flourish, thereby making an even greater contribution to high streets across the country.