A select committee has urged the Government to “think again” and revise its “inadequate” response to proposals aimed at boosting small business growth in the UK. The Business and Trade Committee, led by Labour MP Liam Byrne, criticised ministers for failing to deliver a bold enough strategy to support struggling small firms.
Committee Demands Stronger Action
In a statement on Tuesday, the committee said it still hopes for a more ambitious strategy after the Government’s response to its February report fell short. The committee claimed the response “restates pre-existing schemes and commitments” and fully accepts only six out of 36 recommendations.
Liam Byrne, chairman of the committee, said: “If Britain is serious about growing the economy, reviving our high streets and creating good jobs, we need a bolder, more ambitious plan to help small firms.” He added that pressures on businesses have intensified since the report was published.
February Report Highlights
In February, the committee warned that a series of major reforms is needed to arrest business closures and decline on the high street. These include cutting costs, overhauling business rates, and ending late payments. The committee found that small businesses across the UK are operating under pressures similar to, and in some cases worse than, those experienced during the Covid-19 pandemic.
The committee called for a “more coherent and ambitious plan” to support businesses. It urged the Government to bring forward a new response with stronger commitments within the next two months.
Government Response Criticised
Mr Byrne said: “When we published our report in February, we warned that many firms were facing cost pressures comparable to the pandemic. Since then, those pressures have only intensified. We welcome the Government’s willingness to listen in some areas but too often it is repeating existing announcements, not confronting the problems businesses told us about first hand.”
