Published in Times Red Box on August 20 2022
I know that entrepreneurs who run small businesses are worried about how rising energy prices and increasing interest rates are going to impact their firms.
The Government backed small businesses during the pandemic with £400bn of support and we stand ready to help again.
Small businesses are the engine of our economy. Whether that’s a coffee shop, hairdresser, takeaway or bakery employing a small team, or a manufacturer with a 200-strong workforce, they create the jobs and ultimately the prosperity that pay for the public services we all use.
I was raised in the world of small business, working in my family’s high street shop in York. My parents worked long, unsociable hours to keep the business going whilst bringing up a family, and I was privileged to join them from a young age serving customers from behind the counter and helping with the accounts.
I also have seen the power of small firms, who never stop innovating or going the extra mile, in my own constituency of Havant in Hampshire.
Having lived and breathed small business, helping entrepreneurs succeed and driving innovation is my main focus as a Treasury Minister.
Which is why I'm so pleased that a few weeks ago, we expanded our Help to Grow: Digital programme, which offers discounts on approved software, so businesses using the scheme can let the tech do the admin and focus their time on their clients.
Whereas the scheme was originally restricted to businesses with 5 or more employees, now businesses with at least one employee can get a digital boost worth £5,000, helping them become more innovative, competitive and profitable. An additional 760,000 more businesses will now be able to benefit, more than doubling the total eligible to 1.25 million.
We have also added eCommerce software to the range of products available, which can help businesses support customers, manage accounts and sell online - saving them time and money.
Adopting new technologies boosts productivity. It means bigger sales and breaking into new markets, helping both the individual business and UK PLC's growth. While the UK is ranked 8th in the world on innovation, we rank much lower when it comes to adopting new tech. If we can make up the “new tech gap” we can boost our economy by £100 billion.
Adopting new technology improves business efficiency and boosts profitability. But I also know that businesses need additional help keeping costs down, which is why we have cut fuel duty, raised the Employment Allowance and introduced 50% business rates relief for the high street.
We will keep providing tax incentives like the Annual Investment Allowance and the super-deduction, the biggest business tax cut in modern British history.
I want to help our brilliant SMEs seize every opportunity to thrive and grow, boosting productivity in all corners of the UK.
By expanding Help to Grow: Digital we’re helping to level up the UK economy and compete with the world’s best businesses.
I know what small business owners need to thrive and I’m backing them all the way.