With Andy Burnham settling into Downing Street as Britain’s seventh prime minister in almost as many years, Diamond Logistics says the early signs are encouraging but is urging the new government to keep small businesses firmly at the centre of its plans for economic growth.
Founder Kate Lester believes the new administration has ‘hit the ground running’, focusing on practical issues that matter to businesses and recognising the importance of technology through the appointment of a dedicated AI minister.
She said, ‘No government can fix every challenge overnight and it is important to give the prime minister and his team time to deliver. But the early signals are positive. Appointing an AI minister shows there is recognition that technology will be central to improving productivity and helping Britain compete on the global stage.’
Kate believes that momentum now needs to translate into meaningful support for the UK’s 5.5 million SMEs, which account for around 60% of private sector employment and more than half of business turnover.
‘Growth won’t come from Westminster alone,’ she said. ‘It will come from thousands of ambitious businesses across the country investing, recruiting and innovating. Government’s role is to create the conditions that give them the confidence to take risks, build businesses and invest for the long term.’
Kate is calling on the government to prioritise five areas that would have the greatest impact on SME growth:
- Greater certainty around taxation and employment legislation, particularly around Capital Gains Tax, to encourage entrepreneurship and risk taking. Entrepreneurs need to know that taking the risk to build a successful business can deliver a meaningful return. A tax environment that recognises and rewards that risk is essential if Britain is to encourage more people to start, build and grow businesses.
- Practical support and incentives to help SMEs adopt AI and automation, rather than allowing advanced technology to become the preserve of large corporates.
- Continued investment in digital skills, apprenticeships and workforce development to address the UK’s long term productivity challenge.
- Easier access to finance to encourage investment in technology, infrastructure and business expansion.
- Simplifying exporting so more British SMEs can compete internationally without being held back by unnecessary bureaucracy.
Kate added, ‘SMEs don’t need handouts; they need confidence, stability and the right environment to grow. That means creating a tax system that encourages people to take the risk of becoming entrepreneurs and building successful businesses, alongside giving established companies the certainty they need to invest and expand.
‘Britain has never lacked entrepreneurial talent. The challenge is making sure people have the confidence to take the risk of starting a business, and that those who build successful companies are encouraged to keep investing and creating jobs here in the UK.
‘Give entrepreneurs the confidence to take risks, encourage investment and make it easier to embrace new technology, and they will create jobs, drive innovation and strengthen the wider economy.’