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Labour unveils plans for small business agency

Labour is mulling plans to launch an agency which would offer loans and services to small businesses including house builders to help them expand, the shadow business secretary has said.

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Labour unveils plans for small business agency #ukhousing

Bill Esterson told politics magazine The House that the Conservative government had launched a “full-frontal attack” on businesses in recent months as he unveiled plans for the new department.

Labour’s plans are based on the United States’ small business administration, a federal agency which was set up in the 1950s and has helped kick-start companies such as Nike and Apple. It is part-funded by fees paid by firms when they use it to access finance.

Mr Esterson said that the Labour party would consider a similar model if it wins power.


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“If we can develop our small business sector, make it much stronger, see far more of them succeed and continue to grow and thrive, we can create more of our own medium-sized firms and give greater stability and strength to the UK economy,” he said.

Labour is hoping to capitalise on a perceived shift in attitudes towards the party by British businesses, who have been left frustrated by the Conservative’s handling of the Brexit process.

Small and medium businesses account for 99% of British companies and employ 60% of the private sector’s workforce. Around of fifth of all small and medium firms are in the construction industry, and the National Federation of Builders (NFB) said it was “encouraged” by Labour’s idea.

However, it said if the Labour Party wants to offer meaningful loans and advice to small businesses, it needs to first understand the environment in which they operate.

Richard Beresford, chief executive of the NFB, called the plan “a positive contribution to the debate on the housing crisis”.

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