What do small businesses really need now to drive the growth mission and keep our high streets thriving?

• New inquiry: Small business strategy
• Call for evidence
• Complete our survey 
• Business and Trade Committee

Yet there can be a sense that they don’t get a “seat at the table”, that they struggle to get heard in the national conversations about trade and economic growth that are dominated by the country’s largest companies. 

Bleak images of high streets with shuttered shops highlight the concerns of communities feeling hollowed out by economic forces beyond their control.  After a decade of large retail chain closures, the 2 years from the start of the pandemic alone saw a net loss of 9,300 retail outlets on high streets in Britain, with department stores, pharmacies, clothing stores, pubs and banks all closing down. 

In the final quarter of 2023, one in every seven high street shops were closed. Average vacancy rates across England are 13.5%. 69% of small businesses say that there are vacant units on their high street. 

Chair quote

Rt Hon Liam Byrne Chair of the Committee said “Britain’s small businesses are the quiet powerhouse of our economy — but too often they are locked out of the decisions that shape their future. While a fortunate few dominate the corridors of power, too many small firms fight battles alone: battling soaring rents, battling unfair business rates, battling to access capital, contracts and customers.  

“This inquiry is about one thing: giving small businesses the voice in the national debate that they deserve, to build a growth strategy that works not just for the giants but for the grafters, the builders and the job creators who power our communities and high streets.”

After last year’s election, the newly reformed Business and Trade Committee reached out to businesses around the country to get a sense of their key priorities - the opportunities and blocks they face in their central role driving the UK’s unifying growth mission. 

What emerged clearly was the drive and energy of Britain’s small and medium-sized enterprises (SMEs) – but also that Britain needs a business plan. Overlooked gaps and misalignments in the regulatory and business support environment are holding back British entrepreneurs.  

There are big questions around business rates and commercial rents as well as the finance and support needed to start and then grow a business. The Government has said it will “set out its vision for support for small businesses” this year.  But unlike the Industrial Strategy, there has been no Green Paper to allow small businesses to consider what’s on the table or input their views. 

So today the Business and Trade Committee is launching an inquiry on the UK’s Small Business strategy - starting this morning with an initial quick tour of high streets to meet with some of the local businesses that bring them to life, alongside a wide call for evidence and the launch of a national survey.

The Committee wants to hear direct from Britain’s small businesses on what really matters to them as they try to thrive - or just survive. The results will feed into Government planning for the strategy. 

Interested stakeholders are now invited to join in our national survey and/or submit evidence on any or all of these inquiry questions by July 16:  

Strategy 

1. What key issues should be addressed through the small business strategy? 
2. How can policymakers ensure that the voice of small businesses’ is heard in government? 

Starting a business 

3. How straightforward is it to start a business, and what difficulties do entrepreneurs face when starting up? 
4. Do small businesses currently face any challenges in competing with larger firms? What can be done to “level the playing field”? 

 Supporting growth 

5. How accessible are public procurement processes for SMEs, and what are the consequences of the Procurement Act 2023 for small businesses? 
6. What is your assessment of the export support available to small businesses? 
7. What are the current challenges to the long-term sustainability of the high street, including ownership of the high street, and what are the consequences of these trends for SMEs?  

Costs 

8. What are the key cost pressures, such as energy prices, facing SMEs, and how should these be addressed? 
9. What is your assessment of the current overall tax regime, including reporting requirements, for SMEs, and how could it be improved? 

Business support  

10. Does the Government’s current business support offer meet the needs of SMEs, and how could the offer be improved? 
11. Do family-run businesses face any specific challenges, including ‘red tape’, and what support do they require to meet these challenges? 

Improving productivity 

12. What has been the experience of small businesses in accessing banking services, and how does the Post Office Banking Framework support their needs? To what extent does this framework also provide adequate access to financial guidance and advice? 
13. How effectively are productivity-enhancing practices, such as new technologies, being shared and adopted among SMEs? Is the Innovate UK Catapult Network meeting the needs of small businesses?  

 Implementation 

14. How should work across multiple government departments, mayoral strategic authorities, and local authorities be coordinated to support the growth of SMEs? 
15. What metrics should the small business strategy use to measure its success, and how should delivery against these objectives be monitored? 

Further information

• About Parliament: Select committees
• Visiting Parliament: Watch committees

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