Contribution
Napoleon’s famous remark that “England is a nation of shopkeepers” was meant as an insult. However, for many of us up and down these isles, the high street and its many small businesses are a source of immense pride. My constituency is home to one of the highest concentrations of small businesses in the country, with more than 3,000 operating locally. Although not all are on the high street, they are all part of the entrepreneurial ecosystem that makes up the local economy.
I have seen at first hand the sacrifices that SME owners right across my constituency make day in, day out: the sleepless nights as financial pressures hit; the long hours away from family, working six or seven days a week; and people’s Herculean efforts to make sure that they might even take a holiday. Those are the challenges facing the self-employed, the sole traders, the family business and the small team.
For over 30 years, my parents had their own small business, which is called Mainly Kitchens. They made huge sacrifices. Dad worked six days a week. They survived the recessions of the 1980s and the financial crash in the early noughties. Because of their financial prudence, they had a business to sell to my brother when Dad retired. Britain is built off the back of small businesses like those in my constituency and the one owned by my family. They account for 99.2% of the business population, employ 16.9 million Britons—60% of private sector jobs—and contribute £2.8 trillion to the UK economy.
Many of these businesses can be found on high streets like the Broadway and the Ridgeway in my constituency—businesses including Therapy Hair and Beauty Boutique, owned by Effi and her husband Daniel; the new Plymstock post office, which postmaster Steven Boyd has opened this month, taking a huge risk at a time of great uncertainty; and Tubb pharmacy in Newton Ferrers.
There are also many off-the-high-street businesses in my constituency, such as Serpells farm stores, owned by Scott. That is a classic example of a business that is a critical part of the local rural economy, and which, because of the Labour Government’s Budget decisions, has had to stop hiring new staff as employment costs rise. In addition, it is experiencing a doubling in its business rates, not the reduction that was promised by the Chancellor. For the avoidance of doubt, the jobs that are not being given are to the young people we have heard much about this afternoon.
The contribution of small businesses cannot be measured purely in pounds sterling. Our high streets form the centre of our communities, and are places where generations have shopped, socialised and worked. For many, the decline of the high street is the clearest sign of the nation’s decline, so it is surprising that this Labour Government seem so determined to kill Britain’s entrepreneurial spirit.
The Labour Government’s business rates reform is nowhere to be seen. Subsequent Treasury reforms have raised concerns that larger businesses, which act as anchor tenants by drawing people to town centres, may be forced to close, which has an impact on smaller retailers by cutting the number of visitors to high streets. This was compounded by the Chancellor’s £40 billion tax raid, funded off the back of hard-working small business owners. Thanks to the small business rates relief brought in by the previous Government, a third of properties were taken out of business rates all together, but this Labour Government seem intent on undoing that progress.
Finally, last week I visited Bidfood UK in Lee Mill, which raised with me serious concerns about the knock-on effects of these rising costs on food wholesalers. This is important because wholesalers play a key role in connecting food producers with local shops, restaurants and public services. The pressures they face from increased operating costs and changes to business rates risk driving prices higher throughout the entire food supply chain, ultimately placing additional strain on small business owners and putting our high streets at risk. If this is not taken seriously by the Government, the impact on food costs and inflation will be huge. The one thing I would love to hear from the Minister about is the point on food wholesalers; in that respect, what is he going to do at the big end to make sure that our high streets remain intact?