Member Article

Election 2015: Which party will do the most for small businesses?

Earlier this week, the five major parties delivered their manifestos in advance of the next month’s General Election. On Tuesday, I interviewed James Matthews-Paul, the founder and editor-in-chief of Brixton-based Output Magazine; he told be about his sheer disbelief in the current economic support system for small businesses (or lack thereof), and he backed it up by some well-researched points. So, I began thinking…

Looking beyond the headlines and handshakes of the Election period, I wanted to know which party is actually pledging the most to help small businesses.

Conservative Party - “’the workers’ party’“

On Tuesday, David Cameron delivered the Conservative Party manifesto; in his speech littered with perfectly formed soundbites like ‘back in the black’ and ‘good life for everyone,’ he promised his party would not raise VAT, national insurance contributions or income tax.

He also reiterated his party’s promise to unearth the lost city of Manchester and build a “Northern Powerhouse” as well as continue with plans to create a high speed rail network.

Cameron said there would be a review of business rates by the end of the year and the Tories would raise personal allowance for low earners. Plans to continue the creation of apprenticeships were also mentioned.

My thoughts: There is some potential here, ignoring the condescension with which the Tories approach issues in ’The North’, I believe a review of business rates is long overdue and I’d like to see if go hand in hand with plans to devolve power to local authorities. The push on apprenticeships is great for small businesses, who are supported by educational bodies to hire young people in various roles - a mutually beneficial partnership.

Labour - “the party of fiscal responsibility“

Ed Miliband’s party pledged to raise the minimum wage to more than £8 by October 2019 in the Labour Party manifesto launch on Monday. He also said he would ban zero hours contracts, and build a British Investment Bank and support a network of regional banks.

My thoughts: For me, increasing the minimum wage is far more economically beneficial than increasing the income tax threshold for low earners, since workers on the minimum wage will still pay tax and therefore contribute to the economy from day one. However, for small businesses, this policy could prove tricky as they will be forced to dig deeper to pay staff and the ban on zero hours contracts will result in added pressure on small business owners looking to take on their first employees.

Liberal Democrat - “not skimpy“

Can confirm, the Lib Dem manifesto was skimpy. In fact, there’s very little to say on the matter of small businesses. Everyone’s least favourite wingman Nick Clegg has also promised to raise the personal allowance to at least £12,500 - a policy he reckons David Cameron stole from him when he turned his back.

My thoughts: Clegg has enjoyed his time sitting at the grown-ups table and now he doesn’t want to leave. In his manifesto, he noted that polls are pointing towards another hung parliament, with a Labour or Tory majority supported by either himself, Nigel Farage or Alex Salmond. Best of a bad bunch, right?

Green Party of England and Wales - “we are focused on are the things we want to be focused on“

The Green Party, led by professional question-dodger Natalie Bennett have laid out plans to abandon GDP and the pursuit of growth as a demonstration of economic success. Instead she wants to use a measure of Adjusted National Product (ANP), which would take into account capital and environmental depreciation.

She also wants to introduce a ‘Robin Hood tax’ (a financial transaction tax) and instigate controls on bank lending. Bennett wants to raise the additional top rate of income tax to 60% and increase corporation tax from 20% to 30%.

The Green Party will also increase the minimum wage to the living wage of £10 an hour by 2020, and to £8.10 an hour this year. Bennett hopes to phase in 35-hour weeks (how continental) and ban those pesky zero-hours contracts.

My thoughts: Money: Bad. Trees: Good.

UKIP - “Believe in Britain“

Yesterday, the UK Independence Party delivered their manifesto in Essex. I’d like to sit here and say Nigel Farage did a stand up job, but rather his Deputy Chair and ‘Head of Policy’, Suzanne Evans, delivered the speech giving while he went down the pub for a pint (unconfirmed). Suzanne was keen to express that UKIP is not a ‘one policy party’ and she got the topic of leaving the EU and limiting immigration out of the way early.

Rather interestingly, but perhaps unsurprisingly, Evans said UKIP would allow British businesses to employ British citizens first. The party would also cut business rates for small businesses and subject zero-hours contracts to a binding code of conduct. UKIP also plans to abolish “green taxes” and levies.

My thoughts: The manifesto, which Nigel Farage admits he did in fact read, was a one-size-fits-all attempt to please every voter - from animal rights to the reintroduction of smoking rooms, no stone was left unturned (if only as much could be said about Clegg’s ditty). As for small businesses, UKIP put forward an interesting proposal. I’m certainly all for the business rates cuts and increased regulation surrounding zero hours contracts. However, Evans neglected to mention how leaving the EU will affect small business funding channels - the lifeline of businesses in the North East and in plenty other regions.

I’ll let you make your own mind up, but remember the most important thing is turning up to the polling station on 7th May and casting your vote. Political democracy is one of the most valuable assets we have, and we must make informed and empowered decisions for the future of our country.

Bdaily is currently working with small businesses to make sure their voices are heard - to find out more, get in touch at editor@bdaily.co.uk or give the newsdesk a call on 0845 388 2022

This was posted in Bdaily's Members' News section by Ellen Forster .