Responding to the Chancellor Rachel Reeves’s Spending Inheritance Statement in the House of Commons, Policy Chair of the Federation of Small Businesses (FSB), Tina McKenzie, said:
“Ultimately, parliamentary theatre will never outweigh the pound in the pocket when it comes to how small businesses view the Government. So small firms will wait to see the Budget before setting too much store by party political claim and counter-claim.
“The strength of the economy is the ultimate determiner of both living standards and the resources available to the public sector. With the King’s Speech missing the mark for small businesses, it heaps pressure on the Budget to bring forward tangible progress in making the UK a better environment for small businesses to succeed.
“The quality of spending, not just the quantity, matters. If the new Office of Value for Money improves the way money is spent, it’s to be welcomed. Reducing unnecessary spending on consultants is a good thing – but we’ll want to see the Chancellor go further in the Spending Review.
“Departmental settlements must cut back on day-to-day procurement spend, where there is simply too much waste. The impacts of this could be alleviated by opening up taxpayer-funded contracts to more small businesses – increasing competition and improving value for money.
“There are also too many employment programmes that do too little to help people into work, and small businesses are also fed up with the number of grants given to large businesses who don’t even pay their suppliers on time. There is a place for discipline, and these are changes we would want to see regardless of the overall spending envelope.
“When it comes to tax, small businesses will have heard the very broad commitments the Labour Party gave in Opposition and would be extremely surprised if the Government reaches straight for the tax lever so soon after giving very clear assurances this would not be the approach.
“We were pleased with the clear commitment of the Prime Minister and the Chancellor in the election to work in partnership with business in the national interest. The country cannot succeed economically unless small businesses do, and we look forward to going through the detail of today’s announcements.”
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About FSB
FSB is a non-profit, non-party-political organisation that offers its members a wide range of vital business services, including advice, financial expertise, support and a powerful voice heard in governments. Founded in 1974, FSB celebrates its 50th anniversary in 2024. More information is available at www.fsb.org.uk. You can follow us on X (formerly known as Twitter): @fsb_policy and on LinkedIn: FSB Westminster.
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