It would be an understatement to suggest that enterprises across the spectrum have faced significant hurdles in recent years. As someone who has co-run a small construction firm, I have witnessed the relentless pressures firsthand. The financial landscape since the 2008 crash has been particularly unforgiving, with many businesses operating on razor-thin margins.
The Struggle for Fair Payment Practices
In the construction industry, I have observed how larger companies sometimes overcommit during contract bids, only to compensate by withholding final payments from specialist subcontractors. This practice has had catastrophic effects, especially on small and medium-sized enterprises (SMEs), which are often family-run operations.
There were times when it seemed almost weekly that a subcontractor we knew would collapse under the strain. For many, that final invoice represented not just profit, but the means to pay directors, invest in growth, and secure employees' jobs. Fighting for these payments became a desperate battle, with excuses ranging from the dubious to the absurd—like an invoice supposedly forgotten in a drawer.
The Retention Issue and Pandemic Fallout
And then there is the matter of retention payments, which adds another layer of complexity. The arrival of Covid-19 and the subsequent years magnified disparities across different sectors. While the furlough scheme provided a lifeline for many, rebuilding a robust customer base post-lockdown proved arduous, particularly for hospitality venues.
Altered consumer habits, a challenging economic climate, and additional Brexit-related bureaucracy created a perfect storm for numerous businesses. From a political standpoint, I have been disheartened by the Labour Government's apparent lack of grasp on these difficulties and the crushing impact of their policy decisions since taking office.
Taxation and Business Rates: A Double Blow
Increases in Employers' National Insurance Contributions, while framed as not a direct tax on workers, impose direct costs on businesses. This forces owners into tough choices, such as reducing staff or cutting expenses elsewhere—a nearly impossible task when resources are already stretched thin.
Business rates now feel like the final straw for many, especially in retail, hospitality, and leisure. The Government is proceeding to remove pandemic-era discounts, coinciding with property revaluations that often result in higher bills. This double whammy threatens the viability of countless enterprises.
Parliamentary Advocacy and Proposed Solutions
My party has consistently called for business rates discounts for all retail, hospitality, and leisure businesses, alongside a temporary VAT reduction for the hospitality sector—a fully-costed emergency measure to aid this beleaguered industry. We urge the Government to heed these proposals.
Recently, I highlighted the hospitality sector's plight in the House of Commons, joining Liberal Democrat colleagues in pressing for the full 20p discount already legislated. Regrettably, this has not been implemented, as viewers can see on Parliament TV.
Local Support Through Networking Events
Beyond parliamentary duties, I believe in fostering local business connections. Last week, I hosted a business breakfast at Patch in Chelmsford city centre, bringing together diverse industries for networking and mutual support.
Over refreshments, attendees discussed challenges and heard from Ellisons Solicitors on employment law changes. This event provided invaluable insights directly from those on the frontline, enabling me to gather real-world stories to strengthen arguments to ministers and inform party policies.
Future Initiatives and Community Engagement
The feedback from participants was overwhelmingly positive, confirming the value of such gatherings. I plan to host more events, possibly focusing on specific industries or emerging issues. Chelmsford businesses interested in future events can email marie.goldman.mp@parliament.uk to register interest.
To all local business owners: thank you for your dedication. I recognise the toughness of the current climate, but your contributions are indispensable to our nation's success.
