An influential committee is urging the government to make a series of reforms to stop businesses from closing as the high street is fast becoming a graveyard of old closed shops.
The government needs to cut costs, overhaul business rates and put an end once and for all for late payments.
Parliament’s Business and Trade Committee disclosed that small businesses are now under the same pressures as seen during the pandemic.
Liam Byrne, chair of the committee, said a “more coherent and ambitious plan” is required to help businesses.
Sage said in December 20124, that small businesses across the UK were owed a whopping £112 billion in late and unpaid invoices.
Byrne said, “SMEs are facing late payments, rising energy costs, increasing crime, a complex tax system and barriers to growth that are compounding rather than easing.
“These pressures are not isolated; together they pose a real risk to business viability, high streets and economic growth.
“High streets do not die by accident.
“If the Government is serious about growth, it must set out a more coherent and ambitious plan for the businesses that make up so much of the UK economy.”
A Government spokesperson said, “Small businesses are the lifeblood of our communities and while we know they are facing a difficult time, we are determined to make the UK the best place for them to thrive.
“That’s why we are supporting them with a £4.3 billion support package to cap big business rate bill hikes and by taking action through our Modern Industrial Strategy and Small Business Plan, and we will also publish a new High Streets Strategy later this year to reinvigorate our communities.”
Shadow business secretary Andrew Griffith said, “Today’s report from the Business and Trade Select Committee confirms what high street businesses already know: business rates, retail crime and energy costs are pushing bricks and mortar shops to the brink.
“Labour’s answer is higher taxes and more regulation.”
Leave a Comment