Labour plans to help small firms
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.THE LABOUR Party has presented itself as the friend of small business with a refurbishing of proposals for a bank to help firms raise money to expand and a right to interest on the late payment of debts.
Derek Fatchett, shadow industry minister, said a Labour government would need a strong small firms sector as a source of future jobs.
He was launching a consultation document, Going for Growth, that focuses on the problems small businesses face in raising investment and protecting their cash flow. Britain has nearly 3 million small firms employing a third of the workforce.
The document says small businesses are too often locked into short-term, expensive finance, involving a high degree of personal risk. Another handicap is the bias of banks towards lending to businesses based on property rather than technology.
Labour is suggesting a business development bank for small businesses, using private sector management to raise money and giving priority to small and medium- sized firms.
After talks with venture capitalists, banks and businesses, Mr Fatchett is confident that private sector money is available. A network of regional development agencies is also proposed to help firms and councils to revitalise local economies.
On debts, the document decries a culture in British business whereby late payment is regarded as a 'legitimate management of credit rather than a reprehensible default on debt'. Overdue credit is estimated to be running at a record pounds 50bn.
The document reiterates Labour's plan for a statutory right to interest above a minimum threshold. No figure is proposed.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments