The Business and Trade Committee has called on the Government to "think again" and revise its response to recommendations aimed at supporting small businesses, describing the current plan as "inadequate."
Committee Demands Stronger Action
Liam Byrne, chair of the Business and Trade Committee, stated: "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." The committee's February report warned that a series of major reforms is needed to prevent business closures and decline on the high street, including 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. It called for a "more coherent and ambitious plan" to support businesses.
Government Response Falls Short
On Tuesday, the committee expressed disappointment that the Government's response to its report "restates pre-existing schemes and commitments" and only fully accepts six out of 36 recommendations. The committee urged the Government to bring forward a new response with stronger commitments within the next two months.
Mr Byrne added: "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."
