Baroness Ayesha Hazarika has called on Chancellor John Healey to do more for small businesses, arguing that SMEs are the lifeblood of the economy and communities, not the "baddies" they are sometimes portrayed as.
Writing ahead of the Budget, she acknowledged that financial conditions are tough, with inflation, food, fuel and the cost of living rising despite some positive growth figures. She stressed that Healey must not look powerless or passive, and that backing small business would send a strong message.
SMEs as Community Pillars
Hazarika highlighted that small and medium size businesses are often family businesses that become a family for many employees. She cited her local nail bar in Brixton, set up by two entrepreneurial young people who still work day jobs, employing local young women and single mums to give them a trade.
She described them as a busy, buzzing hub whose customers support other local shops, but noted they are struggling to make ends meet under the weight of extra taxes and burdens. "They aren't some 'evil multi-national', they are pillars of the community," she wrote.
Support for Burnham's Vision
These businesses are part of Andy Burnham's positive vision for good growth in every postcode and a high street renaissance, she said. The often-female owned beauty parlours and hairdressers sit alongside the pub, post office, café, restaurant and local shops that make for a happy, thriving community.
Hazarika noted that retail, hospitality, beauty and other SME sectors are really feeling the pinch, and argued they could help with the NEETs problem, as they need labour and young people need a start in life.
Call for Tax Break
While acknowledging it is hard to undo all the burdens on small business, she said a signal of intent would be good. "They need a break - ideally a modest tax related one," she wrote, referring to hard-working small businessmen and women who work long days in the shop and spend long nights agonising over the payroll.
The Chancellor has already announced some good news on cutting red tape for small business, but Hazarika insists he needs to do more.
