Labour will set up a British Small Business Administration

The next Labour government will create a Small Business Administration to help Britain grow its way out of the cost of living crisis, Shadow Business Secretary Chuka Umunna will say today. Modelled on the successful United States Small Business Administration (SBA) which works strategically across government, the UK SBA will work to improve the support available, identify opportunities and remove blockages to business growth, ensuring the voices of small businesses and entrepreneurs are better heard in policymaking.

Mr Umunna says It will help spur greater opportunities for small firms as part of the growth agenda including through procurement and ensure there is access for small business to government schemes and key innovation contracts. It will gather information on how departments can benefit from working more closely with innovative small businesses and enable them to thrive, as part of a wider industrial strategy.

This will be part of, what they call, Labour’s drive to make BIS more business-focused with greater enterprise expertise and more effective delivery. The creation of a British SBA is one of the key recommendations of a report to Labour by Lord Andrew Adonis, published this week, into making BIS the world’s most effective business department and examining how machinery of government can better support businesses.

The Federation of Small Businesses backs the idea of a UK version of the US SBA, which was also a recommendation of Labour’s Small Business Task Force led by business people and chaired by former Hewlett Packard Vice President Bill Thomas and the late Nigel Doughty. The SBA working in conjunction with the British Investment Bank which Labour has committed to establish supported by a network of regional banks to boost finance for small business, will carry out much the same functions as the US Small Business Administration but for UK PLC.

Mr Umunna has had meetings with SBA officials in Washington DC during three visits to learn from best practice overseas in developing Labour’s plans. Shadow Business Secretary Chuka Umunna MP will make the announcement in remarks at the Federation of Small Businesses Annual Policy Conference in London.

Giving remarks at the FSB Annual Policy Conference in London on Monday, Shadow Business Secretary Chuka Umunna MP will say: “So Britain can grow its way out of the cost of living crisis and build a balanced recovery built to last we need to do all we can to help our small businesses grow, create new jobs and meet their aspirations. We need government to be a better servant – and customer – of our small businesses and to make sure that entrepreneurs’ voices are heard at the top table. A UK Small Business Administration is necessary to realising this ambition."

Mr Umunna will also say “Based on the best examples from around the world, a UK Small Business Administration would create a step change in the opportunities for small businesses from government procurement and improve the quality of support available, operating along a proper British Investment Bank and a network of regional banks to ensure that start ups and established firms can access the finance they need.”

Responding to Chuka Umunna's announcement Conservative Matthew Hancock, who is a Minister in the Business Department, said: "The Government is already taking action with its new business bank, which brings all small business support under roof. And, as part of our long-term economic plan to secure Britain's future, we are also helping businesses create more jobs by cutting every firm's employer national insurance bill by up to £2,000. More jobs means more people who work hard having the security of a regular pay packet. This whole Government is, in effect, a small business administration - supporting small firms and the people who work for them. Labour's same old policy of more spending, more borrowing and more taxes would risk the recovery, leading to fewer jobs and less financial security for hardworking people."