Responding to the publication of the Government's new Industrial
Strategy, Tina McKenzie, Policy Chair at the
Federation of Small Businesses (FSB), said:
“Through opening up procurement, helping to tackle late payments,
and supporting new sectors adopt new technologies, this document
outlines ways to help the UK's 5.5 million-strong small business
and self-employed community. We now need to work with the
Government to make sure this leads to the growth that is
desperately needed.
“Late payments by bigger businesses to their smaller suppliers
can derail ambition for small firms and we're pleased to see this
serious issue highlighted in the document.
“Through its upcoming consultation, we look forward to the
Government acting on its pledge to tackle late payments through
audit committees and boards of large businesses overseeing and
reviewing payment practices, to improve transparency and
accountability. We want to see this action extended by banning
large firms with poor payment practices from receiving Government
grants, as well as being excluded from winning taxpayer-funded
contracts.
“Meanwhile, involving small businesses more in major project
procurement supports growth, fosters innovation, and strengthens
local economies - and it's good to see an increase in small
business spending in the defence sector. The system is currently
skewed towards larger businesses, so reform must open up
competition by removing barriers to smaller firms. Bringing in
SME spending targets for each individual department will be a
welcome development.
“We've campaigned for greater resources and longer-term certainty
for the British Business Bank's programmes, so today's
confirmation of the new £4 billion initiative will directly
increase investment in SMEs across core sectors, and across the
nations and regions.
“Today's new blueprint is just the start. The forthcoming
Employment Rights Bill is a looming barrier to growth, which
unless improved will increase the risks and costs of employing
people. Action on this, along with the upcoming late payments
consultation and Small Business Strategy, must herald growth and
opportunity for the small business community.”
FSB Wales Chair, John Hurst added:
"The publication of the UK Government's Industrial Strategy
provides an opportunity for a conversation about where we take
the Welsh economy next, at a time when businesses large and small
are looking for greater clarity and confidence.
The success of any strategy will lie in our smaller businesses,
and so this strategy, and the support which comes alongside
it, needs to demonstrate its relevance to our smaller businesses
- whether driving up innovation or productivity, increasing
available funding or developing those businesses for supply
chains - whether defence, aviation or renewables.
With skills such a fundamental issue for businesses, we expect to
see Welsh Government using the consequential funding from skills
measures within this Strategy be used to reinforce our own skills
system here in Wales and have that tailored to the needs of
smaller businesses.
A particular dependency in Wales is that this Strategy should
align with - and be reinforced by - Welsh Government's own
ambitions for businesses and the economy, so businesses will
expect to see clear and meaningful partnership between UK and
Welsh Governments now, and with a new Welsh Government following
the elections in May 2026".
