How Labour councils are backing small businesses

The party's councillors are demonstrating the results that an active government strategy can achieve for business, jobs and growth.

While the Labour Party is out of office nationally, there is still much we can do to support Britain’s small businesses, and we take this responsibility very seriously.

Across the country, Labour councils and councillors are often the first point of access for small businesses seeking support. There are nearly 650,000 businesses active in areas covered by Labour authorities and this figure is set to grow as we seek to win control of more councils this May.

Small businesses are the lifeblood of our economy, with nearly 90 per cent of people moving from unemployment into employment doing so through a small business. If we help these businesses to survive and thrive we will be taking a huge step towards tackling the unemployment crises as well.

In his first conference speech as leader, Ed Miliband expressed his determination for Labour to become the party of small business for just these reasons. We want to see more people setting up and working in business and believe that they reflect our values as the engines of social mobility and challengers of the status quo.

Labour councils across the country are playing a huge role in demonstrating how the next One Nation Labour government will champion and support small businesses and encourage growth in every area.

This is why I have recently published a report - Labour Councils: Backing Business - showcasing some of this excellent and innovative work. The report was produced in association with the Labour Group on the Local Government Association and features a report from every region of England and Wales, including ones by unitary, district and second tier authorities. This builds on last year’s launch of the Labour Councillors Business Network – bringing together Labour councillors from across the country to share ideas, disseminate best practice and develop new thinking.

Nationally, Labour are looking at how government can use procurement smartly to deliver for British business. When one in every seven pounds of GDP is spent by government it is the largest lever we can pull to support UK firms. The report demonstrates how Labour councils are already pulling this lever locally.

Vale of Glamorgan and Merthyr Tydfil Councils describe how they have developed a smartphone app to alert local small businesses to new tenders and explain the process to them and City of Manchester Council explain how they have re-written their tender guidelines to boost local jobs and businesses and developed a website portal for local businesses to use.

Small businesses often tell me that it is hard to find young people with the skills they need and the Labour Small Business Taskforce is looking at how we can equip people leaving education with these skills. These examples show how constructive partnerships between local authorities and businesses can help to deliver this.

Reading Council describe how they secured funding from the O2 Future Fund to develop a "one-stop shop" smart phone app and related social media tools to match the right young people with the right businesses. Stoke-on-Trent’s JET scheme is also highlighted. This connects businesses and unemployed people and continues to support both parties once they have been placed together. Plymouth Council also describe the success of their 1000 Club which encouraged 1,000 local companies to employ a local young person each. Partnership between councils and business can also have many other positive results.

Durham County Council describes how it persuaded Hitachi, a large local employer, to incorporate local small businesses into the local supply chain. Kirklees Council sets out its Innovation Voucher Scheme which offers local businesses grants to improve their efficiency and has lead to rapid growth amongst local firms and the highest rate of private-sector job creation in the West Midlands. The London Borough of Merton reports on how it secured funding from a new major supermarket arriving in the area for shop improvement grants for smaller neighbouring shops.

The report also highlights the importance of having a clear vision and brand to attract inward investment, with Stevenage Borough Council describing how their inward investment campaign “Where Imagination Takes Hold” reached a television audience of six million people. Nottingham City Council also describes how it established an effective cluster of businesses in the new technology sector, called the “Creative Quarter”. This is now a rapidly growing small business hub.

These reports, along with further short contributions from over twenty other Labour councils in the pamphlet, are fantastic evidence of the results that an active government strategy can achieve for business, jobs and growth. They represent a gold mine of ideas for other councils across the country and will also help Labour groups seeking to win office to develop strong manifestos with sound business policies.

Toby Perkins is Labour MP for Chesterfield and shadow minister for small business

Toby Perkins is Labour MP for Chesterfield and shadow minister for small business

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Labour is launching a stealthy Scottish comeback - thanks to Jeremy Corbyn and the Daily Mail

The Scottish Labour strategy is paying off - and hard evidence that it works may be more plentiful come 8 June 2017

When I suggested to a senior Scottish Labour figure earlier this year that the party was a car crash, he rejected my assertion.

“We’re past that,” he said gloomily. “Now we’re the burnt-out wreck in a field that no-one even notices anymore.”

And yet, just as the election campaign has seen Jeremy Corbyn transformed from an outdated jalopy into Chitty Chitty Bang Bang magically soaring in the polls, Scottish Labour is beginning to look roadworthy again.

And it’s all down to two apparently contradictory forces – Corbyn and The Daily Mail.

Kezia Dugdale’s decision to hire Alan Roden, then the Scottish Daily Mail’s political editor, as her spin doctor in chief last summer was said to have lost her some party members. It may win her some new members of parliament just nine months later.

Roden’s undoubted nose for a story and nous in driving the news agenda, learned in his years at the Mail, has seen Nicola Sturgeon repeatedly forced to defend her government record on health and education in recent weeks, even though her Holyrood administration is not up for election next month.

On ITV’s leaders debate she confessed that, despite 10 years in power, the Scottish education system is in need of some attention. And a few days later she was taken to task during a BBC debate involving the Scottish leaders by a nurse who told her she had to visit a food bank to get by. The subsequent SNP attempt to smear that nurse was a pathetic mis-step by the party that suggested their media operation had gone awry.

It’s not the Tories putting Sturgeon on the defence. They, like the SNP, are happy to contend the general election on constitutional issues in the hope of corralling the unionist vote or even just the votes of those that don’t yet want a second independence referendum. It is Labour who are spotting the opportunities and maximising them.

However, that would not be enough alone. For although folk like Dugdale as a person – as evidenced in Lord Ashcroft’s latest polling - she lacks the policy chops to build on that. Witness her dopey proposal ahead of the last Holyrood election to raise income tax.

Dugdale may be a self-confessed Blairite but what’s powering Scottish Labour just now is Jeremy Corbyn’s more left-wing policy platform.

For as Brexit has dropped down the agenda at this election, and bread and butter stuff like health and education has moved centre stage, Scots are seeing that for all the SNP’s left wing rhetoric, after 10 years in power in Holyrood, there’s not a lot of progressive policy to show for it.

Corbyn’s manifesto, even though huge chunks of it won’t apply in Scotland, is progressive. The evidence is anecdotal at the moment, but it seems some Scots voters find it more attractive than the timid managerialism of the SNP. This is particularly the case with another independence referendum looking very unlikely before the 2020s, on either the nationalists' or the Conservatives' timetable.

Evidence that the Scottish Labour strategy has worked may be more plentiful come 8 June 2017. The polls, albeit with small sample sizes so best approached with caution, have Ian Murray streets ahead in the battle to defend Edinburgh South. There’s a lot of optimism in East Lothian where Labour won the council earlier in May and MSP Iain Gray increased his majority at the Scottish election last year. Labour have chosen their local candidate well in local teacher Martin Whitfield, and if the unionist vote swings behind him he could overhaul sitting MP George Kerevan’s 7,000 majority. (As we learned in 2015, apparently safe majorities mean nothing in the face of larger electoral forces). In East Renfrewshire, Labour's Blair McDougall, the man who led Better Together in 2014, can out-unionist the Tory candidate.

But, while in April, it was suggested that these three seats would be the sole focus of the Scottish Labour campaign, that attitude has changed after the local elections. Labour lost Glasgow but did not implode. In chunks of their former west of Scotland heartlands there was signs of life.

Mhairi Black’s a media darling, but her reputation as a local MP rather than a local celebrity is not great. Labour would love to unseat her, in what would be a huge upset, or perhaps more realistically go after Gavin Newlands in the neighbouring Paisley seat.

They are also sniffing Glasgow East. With Natalie McGarry’s stint as MP ending in tears – a police investigation, voting in her wedding dress and fainting in the chamber sums up her two years in Westminster – Labour ought to be in with a chance in the deprived neighbourhoods of Glasgow’s east end.

Labour in Scotland doesn’t feel like such a wreck anymore. Alan Roden’s Daily Mail-honed media nous has grabbed attention. Corbyn’s progressive policies have put fuel in the tank.

After polling day, the party will be able to fit all its Scottish MPs comfortably in a small hatchback, compared to the double decker bus necessary just a few years back.

But this general election could give the party the necessary shove to get on to the long road back.

James Millar is a political journalist and founder of the Political Yeti's Politics Podcast. He is co-author of The Gender Agenda, which will be published July 21 by Jessica Kingsley Publishing.

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