Responding to the publication of the Government’s new Industrial Strategy, Tina McKenzie, Policy Chair at the Federation of Small Businesses (FSB), said: “Through opening up procurement, helping to tackle late payments, and supporting new sectors adopt new technologies, this document outlines ways to help the UK’s 5.5 million-strong small business and self-employed community. We now need to work with the Government to make sure this leads to the growth that is desperately needed.
“A key part of this growth is innovation. Small firms want to innovate, and more would do so if they had the right information and support. The Made Smarter tech adoption programme for small manufacturers has had good results and seeing this model rolled out to the professional and business services is a positive step.
“Late payments by bigger businesses to their smaller suppliers can derail ambition for small firms and we’re pleased to see this serious issue highlighted in the document.
“Through its upcoming consultation, we look forward to the Government acting on its pledge to tackle late payments through audit committees and boards of large businesses overseeing and reviewing payment practices, to improve transparency and accountability. We want to see this action extended by banning large firms with poor payment practices from receiving Government grants, as well as being excluded from winning taxpayer-funded contracts.
“Meanwhile, involving small businesses more in major project procurement supports growth, fosters innovation, and strengthens local economies – and it’s good to see an increase in small business spending in the defence sector. The system is currently skewed towards larger businesses, so reform must open up competition by removing barriers to smaller firms. Bringing in SME spending targets for each individual department will be a welcome development.
“We’ve campaigned for greater resources and longer-term certainty for the British Business Bank’s programmes, so today’s confirmation of the new £4 billion initiative will directly increase investment in SMEs across core sectors, and across the nations and regions.
“Today’s new blueprint is just the start. The forthcoming Employment Rights Bill is a looming barrier to growth, which unless improved will increase the risks and costs of employing people. Action on this, along with the upcoming late payments consultation and Small Business Strategy, must herald growth and opportunity for the small business community.”