Small and medium sized businesses are the backbone of our economy. In October, Liberal Democrats called for:
- A substantial cut in interest rates
- An immediate overhaul and beefing up of the Small Firms Loan Guarantee Scheme
- Measures to ensure that the recapitalised banks abide by a new code of conduct on business lending practices
- An emergency summit between energy firms and small business representatives to look at ways of reducing the burden of energy bills
- Measures to ensure small firms are better able to access public procurement
Where are we now?
While the Government prevaricated, the economic situation facing British businesses (of all shapes and sizes) has only worsened: insolvencies are increasing, redundancies are being announced every week, and the Government’s assumption that the economy will begin to emerge from recession by mid 2009 seems improbably optimistic. The problem facing small businesses is not just the lack of credit, but also a real and prolonged lack of demand for their goods and services.
Reg Supporting Local Businesses
In the meantime, the Conservatives have said very little on what new or different policies they would bring in to help small businesses. They refuse to acknowledge the need for a fiscal stimulus, they are muddled over monetary policy and they have re-hashed old tax policies (giving tax breaks to employers who take on the long-term unemployed, for example) which will not help to stimulate demand and will not work in the current economic climate.
The Liberal Democrats are supportive of much of what the Government has announced over recent weeks: in many cases it could not have come soon enough.
However, we remain committed to ensuring businesses getting the assistance and not to mention clarity that they need immediately.