[This afrticle was originally published in the Belfast Newsletter on Tuesday 30th July 2024]
Recently I attended an excellent business-focused event hosted by the Prime Minister, Sir Keir Starmer, in 10 Downing Street. This was the new Labour Government`s first public event in Downing Street since coming into office so it was great to get right to heart of the administration within the first three weeks of the Prime Minister and his team taking up their new roles. Representing Northern Ireland businesses through my role as Chair of FSB`s NI Policy Unit and CEO of Environment Street Furniture, I had the opportunity to speak directly to the Prime Minister and a number of his colleagues. What set this event apart from previous ones was that almost the entire UK Cabinet were also in attendance and they clearly wanted to have a conversation with business leaders about how to navigate the challenging economic landscape and stimulate the economy to encourage growth.
Deborah Meaden and Theo Paphitis, both seasoned entrepreneurs and stars of Dragons’ Den, also attended and focused in on the crucial role of entrepreneurship in starting businesses and growing the economy.
It was great to get a shout-out from the Prime Minister in the address that he gave to the assembled audience from across the United Kingdom, as it recognised the important role of Northern Ireland and our SMEs in growing the economy. More importantly, it was followed by an opportunity to speak directly to the Prime Minister, as well as with the Chancellor Rachel Reeves MP, and the Secretary of State for Business and Trade Jonathan Reynolds MP. This was the sort of direct engagement for which business strives hard, so it was important not only to discuss the general operating climate for business, but also to have a clear policy ‘ask’ in place.
Businesses have faced so many challenges over the last number of years which I raised with Cabinet members, including Covid sky rocketing energy costs, skills shortages, and more specifically to Northern Ireland, the lack of an affordable and accessible childcare strategy to release more people back into the workforce. In particular, however, I was pleased to be able to have a lengthy conversation with the Chancellor about devolving full corporation tax powers to Northern Ireland, emphasising how important it is that the Government works constructively with the NI Executive to find an innovative mechanism to fund the devolution of Corporation Tax so that we can cut the tax rate, and help Northern Ireland become one of the world`s most attractive, dynamic, modern economies and a leading contributor to the growth of the whole UK economy. This will help businesses in Northern Ireland compete fairly with their counterparts in the Republic, stimulate inward investment and growth, and maximise the opportunities of having dual market access to the UK Internal Market and the EU`s Single Market.
The message I took from this event was that the Government wants to work in partnership with businesses to deliver economic growth. Bringing so many members of the Cabinet together alongside business leaders certainly emphasised that message and hopefully demonstrates that they should be judged by their actions rather than words.
I say this because following the delivery of the King`s Speech, FSB were disappointed that there wasn`t a single mention of small businesses in the 40 Bills announced by the Government nor in the 104 pages of Civil Service briefing. Before entering Government the Labour Party had drawn up a Small Business Plan which promised to tackle a range of issues important to SMEs, including legislation on late payments. We all need to work together, businesses and politicians, if we want to deliver the economic growth that will pay for public services well into the future. However, to achieve that, we need to ensure that actions match words. If Government is to create the conditions for growth it needs to make changes at budgets and make good on promised legislation through King`s Speeches.
So, although the King’s Speech was short on commitments to small business, the Prime Minister’s Downing Street event last week showed that, from the top down, there is a real determination to engage with business and understand the issues. We look forward to seeing this commitment transformed into delivery and will work positively and constructively with the Government as they pursue economic growth in the months and years ahead.