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23 March 2015
 
 

Labour vs Conservative and the Battle to Win Over SMEs

The general election is on the horizon and the two major parties are trying to win over small businesses with big promises. So what’s on the figurative tables of Mr Miliband and Mr Cameron this year? Read on for an overview of some of the ‘need to know’ factors about the proposed policies and what they mean for British SMEs.

The big picture 

  • The economy is playing an integral role in this year’s campaigns. As expected, current Prime Minister David Cameron and opposition leader Ed Miliband are doing everything they can to sway swinging voters with big promises in regards to economic policies.

 

  • According to the latest stats SMEs are responsible for almost one third of the UK’s private sector turnover and 50% of private sector employment.

 

  • The Federation of Small Businesses recently revealed that SMEs employ a huge 15.2 million people across the nation.

 

  • In total, SMEs turn over £1.6 trillion every year. 

Cameron’s key points 

  • Under David Cameron’s ‘Help to Grow’ scheme 500 fast growing small businesses will receive £1 billion to help make the jump to being medium sized firms.

 

  • Cameron has recently claimed that he wants the government to “get out of the way of small business success” and remove unnecessary red tape. A review of current regulations and removal of over 3000 rules will hopefully make it easier for businesses to grow and expand.

 

  • Cameron has made it very clear that SMEs are the key to Britain’s continuing economic prosperity. At the recent British Chambers of Commerce 2015 conference he maintained that “SME’s are the engine room for growth.”  

Miliband’s key points 

  • Labour is on a mission to boost its pro-business reputation by rolling out a series of plans that would offer augmented support to SMEs. This includes shunning the small business rates price hike and immobilising levies in 2016.

 

  • Miliband claims that if his party comes into power it will set up a system of regional banks with a purpose of supporting small business.

 

  • Under a Miliband government SMEs will enjoy a brand new Small Business Administration.

So who’ll come up trumps this election? At the moment David Cameron and his right wing capitalist ideals appear to be topping the polls however Ed Miliband is building a strong case for British businesses which could eventually win the public over. Whoever is running the country, it will always pay to have specialist business insurance to protect your assets and staff. The UK is apparently in an economic recovery but working people and small businesses and feeling the benefit, so use insurance compare websites to ensure you’re getting the cheapest quote and cut costs where you can.