During a visit to Tyneside, the UK Government's Minister for Small Business and Economic Transformation has emphasised the 'urgency' behind efforts to support small and medium-sized enterprises (SMEs).
Addressing Business Concerns Head-On
Blair McDougall, who has been in his post for ten weeks, spoke at The Biscuit Factory in Newcastle as part of the launch of the Government's Business Growth Service roadshow. His comments came in response to criticism from Steve Hare, the boss of FTSE100 firm Sage plc, who stated that government briefings about potential measures in the upcoming Budget had created uncertainty and stalled business investment.
Mr McDougall acknowledged the pre-Budget speculation but sought to reassure businesses. 'There's an element of this before every Budget, I think, and obviously people will not have to wait much longer,' he told BusinessLive. 'More broadly, I'd say... from the very beginning there's been this huge sense of urgency around supporting businesses.'
A Defence of Policy and a Pledge for Support
The Minister directly addressed one of the most contentious issues for businesses: last year's decision to increase Employer National Insurance Contributions. Business groups, including the British Chambers of Commerce, have heavily criticised the move, saying it 'fuelled inflation, hit investment and damaged job opportunities.'
Mr McDougall defended the policy, stating it was a 'very difficult' decision necessary to 'regain credibility in the global markets.' He stressed, however, that the government had protected the smallest businesses by increasing the employment allowance.
Looking beyond tax, the Minister highlighted the government's broader SME support efforts. 'We do absolutely understand the headwinds that small businesses face,' he said, pointing to initiatives to increase finance, tackle late payments, and cut red tape.
Connecting Support to the Regions
The event in Newcastle marked the first stop for the Business Growth Service roadshow, a 'one stop shop' for business advice and practical support launched in July as part of the government's flagship Small Business Plan.
Exhibitors at the event included:
- North East Combined Authority
- Innovate UK
- Sunderland University
- UK Export Finance
Henry Kippin, chief executive of the North East Combined Authority, commented on the importance of the initiative for the region's economic transformation. 'The North East is home to some of the most innovative and resilient businesses in the country,' he said, adding that the roadshow makes it easier for local SMEs to access the advice and funding they need to grow.
