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"The government’s investment summit might as well come with a neon sign: Big Business Only."

ended 14. October 2024

The government’s inaugural International Investment Summit “might as well come with a neon sign, Big Business Only,” one small business owner has said. 

The criticism comes as the government will announce billions worth of investments in emerging growth sectors including AI and life sciences, and the PM is expected to outline how he will “do everything in my power to galvanise growth including getting rid of regulation that needlessly holds back investment".

Patricia McGirr, Founder at Repossession Rescue Network, said: "The government’s investment summit might as well come with a neon sign: ‘Big Business Only.’ While they are handing out billion-pound deals and cutting red tape for corporate giants, small businesses are left out in the cold. SMEs don’t need handouts, they need to keep more of their profits to reinvest and grow. Instead, they’re being bled dry by tax hikes and uncertainty. The government’s selling a dream to boys in the boardrooms while small businesses are choking on the reality of rising costs and shrinking margins. If they keep ignoring the backbone of the economy, they’ll soon find there’s nothing left to hold the UK up.”

Another SME business owner, Richard O'Connor, Technical Director at First Mats, said: “I feel like the government has a different set of priorities when it comes to supporting big businesses versus SMEs. The PM said wealth creation is his number one mission, but to achieve that, he will need to support SMEs just as much as big businesses.”

Sam Kirk, Managing Director at J-Flex Rubber Products, was withering: "SMEs are constantly told they are the "backbone of the economy" which is, and has been for some time, an empty gesture. If the Government continue to neglect small businesses and press ahead with proposed tax hikes and other regulatory changes, that backbone will break."

Meanwhile, Gabriel McKeown, Head of Macroeconomics at Sad Rabbit Investments, urged the government to focus more on smaller firms as they need it most: “The government is rolling out the red carpet for big business, and despite the declaration that Britain is ‘open for business’, this comment feels laughable against a backdrop of continued economic uncertainty. While it is great that multinationals will find it easier to build a data centre, many small businesses just want to make it through to the end of the year.”

And David Belle, Founder at Fink Money, said the Government simply have too little experience in business: “Fundamentally, this government does not understand business. Of the 37 Labour MPs that have worked in the private sector, only 13 have worked in the private sector outside law, communications and PR, of which these roles were directly connected to Westminster politics. When you have an ideological predisposition to pro-public sector, you are really only going to hear the views of these who can lobby at Westminster, so big corporations and banks, etc. This is why, for instance, Reeves does not understand exactly why increasing capital gains by nearly 100% is so off-putting to so many. Imagine you spend years taking a risk with your small business to realise some potential value only to then lose 40% of the value creation when it’s sold? They simply have too little experience in business and so are being led by conglomerates that will inherently destroy competition as policy is dictated by them.”

Free news agency, Newspage, sought the views of small business owners, below.

13 responses from the Newspage community

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Tony Robinson
Chair at Yorkshire in Business Limited
The Labour Government continues to amplify the previous Government's "We're the Government for Big Business and all things American" policy and messaging. Up to one million start-ups each year, comprising 5.6 million self-employed people and micro-business owners have been left with a losing fight against soaring basic business costs, regulatory compliance costs and a wait for payment of goods and services satisfactorily supplied of 68 days. This discrimination means debt and depression for micros, with monthly bills to pay. 3 million were excluded from covid income support, Post Office/Horizon, Loan Charge tragedies, and Government continuing to contract with and fund big companies that have 45-120 day payment terms destroys our families and communities.
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Gary Parsons
Leadership Mental Health Advocate & Inspirational Speaker at Selfish Thinking Co
While infrastructure investment is crucial, the real driver of growth is the mental health and resilience of business leaders. By investing in leaders’ wellbeing, particularly in SMEs, we can boost productivity and decision-making, which will ultimately support economic growth. If the government is serious about improving GDP, it must prioritise the mental health of those leading the economy. The government’s focus on large-scale investments, while important, overlooks the wellbeing of those leading businesses, particularly in SMEs. These leaders face significant pressures, especially with looming tax changes and regulatory uncertainty.
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Sam Kirk
Managing Director at J-Flex Rubber Products
SMEs are constantly told they are the "backbone of the economy" which is, and has been for some time, an empty gesture. If the Government continue to neglect small businesses and press ahead with proposed tax hikes and other regulatory changes, that backbone will break.
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Richard O'Connor
Technical Director at First Mats
As the director of a small business that actively uses AI and emerging technologies to drive growth, I feel like the government has a different set of priorities when it comes to supporting big businesses versus SMEs. While investments in sectors like AI and life sciences are critical, small businesses drive much of the innovation that can ripple across the entire economy. The focus shouldn’t just be on large corporations when SMEs, which employ around 60% of the workforce, are already leveraging these technologies to increase productivity, create jobs and stay competitive. Yet, instead of clear policies and support for smaller businesses, we often face uncertainty around taxes and regulations that could hinder our ability to invest in our workforce and continue innovating. The PM said wealth creation is his number one mission, but to achieve that, he will need to support SMEs just as much as big businesses.
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Patricia McGirr
Founder at Repossession Rescue Network
The government’s investment summit might as well come with a neon sign, 'Big Business Only'. While they are handing out billion-pound deals and cutting red tape for corporate giants, small businesses are left out in the cold. SMEs don’t need handouts, they need to keep more of their profits to reinvest and grow. Instead, they’re being bled dry by tax hikes and uncertainty. The government’s selling a dream to boys in the boardrooms while small businesses are choking on the reality of rising costs and shrinking margins. If they keep ignoring the backbone of the economy, they’ll soon find there’s nothing left to hold the UK up.
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Riz Malik
Independent Financial Adviser at R3 Wealth
We are a nation of small businesses but when it come to policy, whether it’s Labour or Conservative, large businesses will always be more important. Growth and innovation comes from smaller businesses as well but I wouldn’t expect an administration who hasn’t worked in the real world or run their own business to understand that.
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Justin Moy
Managing Director at EHF Mortgages
Given that we are often told that small business is the backbone of the British economy, we rarely get a sniff of this kind of opportunity to speak and to receive such financial support. Instead, we battle high rents, higher business rates, worsening taxation, potentially more difficult and expensive employment laws, the continued payback of Covid BounceBack Loans for years to come, and the uncertainty of whether we will ever make a real profit for the benefit of our families. The divide between small and large businesses has never felt wider than today, and there is little prospect of it improving in the small business community.
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Gabriel McKeown
Head of Macroeconomics at Sad Rabbit - Substack Newsletter
As ‘Two-Tier Keir’ makes a comeback, large firms enjoy the benefits of a sycophantic government, while small enterprises struggle to survive a ‘painful’ budget. The government is rolling out the red carpet for big business, and despite the declaration that Britain is ‘open for business’, this comment feels laughable against a backdrop of continued economic uncertainty. With Labour's commitment to address a £22bn fiscal deficit while pledging not to raise income tax, NI, or VAT, the looming budget has put small businesses in the crosshairs. Consequently, this recent emphasis on support for large corporations has sparked real concerns about whether SMEs, often regarded as the backbone of the economy, are receiving any attention and support. The fate of the UK's economic credibility hangs in the balance. While it is great that multinationals will find it easier to build a data centre, many small businesses just want to make it through to the end of the year.
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Rohit Kohli
Director at The Mortgage Stop
The true engine of this country that generates growth and wealth is small and medium businesses. Instead of pandering to large corporations who want billions in government handouts and then do what they can to pay as little tax as possible from their profits, this government should make it easier for SMEs to invest and grow, allowing them to retain more of their profits which they then use to invest in jobs in their local area.
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David Belle
Founder and Trader at Fink Money
Fundamentally, this government does not understand business. Of the 37 Labour MPs that have worked in the private sector, only 13 have worked in the private sector outside law, communications and PR, of which these roles were directly connected to Westminster politics. When you have an ideological predisposition to pro-public sector, you are really only going to hear the views of these who can lobby at Westminster, so big corporations and banks, etc. This is why, for instance, Reeves does not understand exactly why increasing capital gains by nearly 100% is so off-putting to so many. Imagine you spend years taking a risk with your small business to realise some potential value only to then lose 40% of the value creation when it’s sold? They simply have too little experience in business and so are being led by conglomerates that will inherently destroy competition as policy is dictated by them. And we know that this Labour government is willing to do donors’ bidding.
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Graham Cox
Director at Bridging Hub
We're a nation that does things oh-so-slowly. Planning permission often takes years. And just look at our never-ending public enquiries, or the often decades of appeals before a miscarriage of justice is overturned. The government is right to fight this inertia and resistance to the huge investment and radical change this country needs. We need to get building key infrastructure quickly. As long as it's done responsibly, I'm all for it. But the government needs to ensure small businesses are supported too. Some of them will become the big businesses of tomorrow.
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Malcolm Allison
Company owner at Intercomm International Ltd
A focus on lifescience is much needed. It was a core strength of the economy 20 years ago and the benefit will trickle down to support services like medical communications. However, it might not offset the added complexity recent employment legislation introduced, which will give pause for thought about hiring new staff in a small business.
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Iain Swatton
Director at Exemplar Financial Services
The government’s International Investment Summit comes at a critical time, and we all hope it brings the much-needed investment boost the country is counting on. However, this optimism is overshadowed by rumoured changes to capital gains tax and corporation tax. While these potential shifts might not rattle large corporations, they could hit smaller SMEs — the backbone of the UK economy — especially hard. What’s more, if the government wants to incentivise individuals to start businesses, these tax changes might have the opposite effect, putting people off. With the Budget only weeks away, this uncertainty could be extremely damaging at a time when stability and confidence are crucial. Let’s hope the summit delivers the boost without undermining future growth.