Small Business Saturday

Debate between Toby Perkins and Stephen Mosley

Thursday 4th December 2014 Westminster Hall

[Stephen Mosley]

I know how much the hon. Member for Streatham has been involved. He first learned about small business Saturday when he saw celebrities and high-profile people in the US tweeting about it. He, with Members from all parts of the House, put in a huge amount of work to bring small business Saturday to the UK last year. In the UK, small business Saturday has settled on the first Saturday in December, and it aims to have a long-term impact by encouraging shoppers to shop local and support the small businesses in their local area.

An independent community interest company, Small is Big, has been set up to run small business Saturday in the UK, and it endeavours to encourage organisations to support small business Saturday and get the word out about the day. Organisations such as the Federation of Small Businesses, the Association of Town & City Management, the Association of Convenience Stores and the Northern Ireland Independent Retail Trade Association have given their support and have encouraged their memberships to get involved. Last year’s small business Saturday gained widespread support and publicity across the UK in the newspapers, on TV and in social media.

Surveys show that 48% of UK customers were aware of last year’s small business Saturday and of the campaign’s aim to encourage people to shop small and shop local. The small business Saturday UK Facebook page gained more than 1.5 million views, and #SmallBizSatUK was in Twitter’s top three trending items all day. The campaign gained widespread support across the country, with 40% of local authorities also supporting the day. It is estimated that more than £460 million was spent in small businesses on that day alone, with 43% of shoppers deciding specifically to shop at a local store, spending £33 each on average.

Last year, small business Saturday gained the support of more than 200 Members of Parliament, including the Prime Minister and Members from both Front Benches. I was one of those 200 MPs, and I used small business Saturday to try to boost our local small shops and high streets in Chester. We distributed fliers and posters, and with the support of the local newspapers, we advertised both the day and special offers by many of our local shops. More than 400 local shops took part, and I started my Christmas shopping in the wonderful Chester suburb of Hoole, which has a fantastic reputation as one of the premier local high streets in Chester and is full of local, independent shops.

Running alongside small business Saturday, I was delighted to organise and run our first small business awards, which allowed customers to nominate and vote for their favourite independent shops and businesses. It was obvious that local people recognise the difference that these businesses make, whether it be the great customer service they receive or the high-quality products that the shops deliver. More than 150 businesses took part in the awards, and more than 1,000 local people voted for their favourite business. G&M Goold funeral directors in Vicars Cross and Monogram dry cleaners in Newton were the joint winners of my awards last year.

This year’s small business Saturday looks likely to beat all records. Like last year, we are seeing a huge push on the internet and on social media. The website www.smallbusinesssaturdayuk.com contains loads of useful information and promotional materials, such as digital packs of downloadable marketing material, including posters, logos and social media icons. There is also advice on running successful social media campaigns and a useful guide to avoiding the most common Twitter pitfalls—something some of our colleagues could do well to read. The small business Saturday team is using social media channels to feature 100 small businesses—one a day—in the 100 days leading up to small business Saturday, highlighting all that is great about small businesses. Foodies, an Edinburgh cafe, bakery and caterer launched with help from the Prince’s Trust, is today’s “small biz 100” company.

Alongside the online campaign, the small business Saturday bus is travelling the length and breadth of the country advertising small business Saturday and handing out promotional materials. There is also a big campaign in the traditional media, with many national and local newspapers already getting behind small business Saturday, highlighting the importance of Britain’s small businesses and backing the “shop small, shop local” campaign.

Chester will again be playing its part in ensuring that small business Saturday is a huge success. My office has produced small business packs containing posters and fliers, which we have distributed to small shops in the city centre and in suburban shopping areas. We have launched this year’s competition to find Chester’s favourite small business and distributed thousands of nomination slips, as well as allowed people to nominate their favourite small businesses on my “Championing Chester” website. Chester has a strong reputation as home to many successful small independent shops and I look forward to seeing the nominations and joining the celebration of our small business scene’s diversity and success.

Small business Saturday is an excellent way of highlighting the importance and success of small business across the UK, but the campaign, as we have heard, is about more than encouraging people to use small, independent local shops on one day a year. It is also about changing people’s mindsets so that they shop local and shop small every day of the year. Just as consumers need to be there to support small business 365 days a year, the Government also need to be there 365 days a year.

So far, as we have heard in interventions, the Government have an impressive record. I will briefly outline some of the welcome measures and support that have been provided to help small businesses thrive and grow. They include: the employment allowance, which has cut each company’s national insurance bill by £2,000, which directly benefits smaller companies disproportionately more than large multinationals; the reduction in corporation tax rates; the doubling of small business rates relief, and the welcome announcement from the Chancellor yesterday that that will continue after April next year. A £1,000 business rates discount has also been introduced for retail premises with a rateable value up to £50,000, which the autumn statement yesterday increased to £1,500 from April next year.

[Toby Perkins (Chesterfield) (Lab)]

We all know business rates are a bugbear for many small businesses, particularly in the high-street sector. What was the hon. Gentleman’s view on the Government’s decision back in 2012 to put off the revaluation of business rates? Does he think that that was a mistake, on reflection, or does he support their decision?

[Stephen Mosley]

I am delighted by the action that the Government have taken, whether it is the introduction of small business rates relief, the rebate for small retail units or, as we heard earlier, the decision announced yesterday to review the business rates system. I hope that the Opposition support the Government in achieving their aims.

--- Later in debate ---

[Toby Perkins]

In terms of the business rates, I am not clear what the Government’s aims are, other than having a review. However, I was asking the hon. Gentleman specifically about the decision to put off the revaluation of business rates, which will have had a significant impact on most northern communities, and probably on his. I would be interested to hear his analysis and whether he supported that measure.

[Stephen Mosley]

I was trying to keep the small business Saturday debate non-political to show what support exists across the House for small business in the UK, but if the shadow Minister wants to get political, I could point out why this Government inherited massive spending problems in 2010. Huge mistakes were made up to 2010. I do not want to go there; I want to keep this debate positive about what we can do to help small business going forwards. Is the hon. Gentleman happy with that?

[Toby Perkins]

I am happy to take that challenge, although I do not know why the hon. Gentleman feels quite so threatened. He was reading off a list of things that the Government had done, and one of the most significant decisions that they have taken over the past few years has been their decision on business rates. He is talking about business rates, so I asked whether he supports that decision. He should not necessarily see that as hostile; I am just asking him what his view is.

[Stephen Mosley]

I quite agree that the Government have done a lot, whether on small business rates relief, the doubling of rates relief or the rebate. I totally support those actions, and I support the announcement yesterday of a future review of business rates.

The measures on business rates and corporation tax allow small businesses to keep more of their hard-earned cash—money they can use to take on more staff, invest in new equipment, or simply pay down debt. To help small businesses raise the cash that they need to start or grow, the Government have also launched the British Business bank, providing up to £4 billion in funding for business on top of the successful start-up loans scheme, which has already provided £150 million to enable more than 20,000 entrepreneurs to follow their dreams and start their own small companies. I am sure that the Minister will highlight many more of the schemes that he and his Government have introduced to help small business in his response to the debate.

Since 2010, hundreds of thousands of new businesses have been launched every year, so that, as we heard the Prime Minister say at questions yesterday, there are now more than 760,000 more businesses in the UK. In my constituency of Chester, new business start-ups have increased by 300%. Small businesses have been responsible for nearly half the job creation in the UK. They employ about 15 million people and make up about half of our private sector economy. Small business has an absolutely fantastic story to tell, and small business Saturday is an opportunity for us all to shout from the rooftops about how important our small and local shops and businesses are.

Although the Government have done a lot to help, it is also crucial that local communities, groups and businesses come together and celebrate all that is great about our small businesses and the contribution they make to our economy and our high streets, because the people who benefit the most from having successful, popular and thriving local shops are local communities themselves. I will be shopping small and local in Chester this Saturday, and I hope that the Minister and other Members will back small business Saturday too.