Douglas Grant, Managing Director at Conister Bank, says the new Labour government must incentivize investors to support UK SMEs.
The UK already has several programs in place to provide significant tax incentives to support early-stage and private firms. These include the popular EIS/SEIS program and VCTs [venture capital trusts]. Grant notes that it is essential that smaller firms have access to capital to support growth and to attract investment the Labour government should “introduce incentives for investors, such as tax breaks, investment schemes, and venture capital support.”
“The support for the venture capital sector, facilitated by its VCT, EIS, and SEIS schemes, should be reinforced to establish a continuous financial support system for SMEs while simultaneously appealing to investors seeking tax-efficient investments and attractive returns. By creating a conducive investment environment, we can unlock capital, drive entrepreneurship, and catalyse economic growth across all sectors, says Grant. “The success of SMEs is pivotal to the overall prosperity and resilience of the UK economy. By prioritising the outlined areas and implementing targeted policies and initiatives, the Labour government can create an environment where SMEs can thrive, innovate, and play a pivotal role in driving forward a much-needed economic resurgence.”
Grant has more advice for Labour, including the recommendation the government should establish long-term government-backed financial support for SMEs.
He is also of the opinion that Labour should embrace technology as a “job enabler” while supporting supply chains and developing new infrastructure.
Grant tells Labour they must enact policies that not only ensure SMEs survive but they must also thrive.