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It is great to be here with the Federation of Small Business.

I know today you have the pleasure of me, Nick Clegg and George Osborne.

I guess you’ll be reminded of the old US bumper sticker, which I think you can take some comfort in:

“Cheer up. Only one of them can win!”  

I’d like to thank Mike Cherry, the FSB National Policy Chair and to John Allan, your National Chairman, for all they do in standing up for small business.

I am particularly glad to have the opportunity to thank each and every business owner here for the fantastic job you do for our country.

You are the real wealth and job creators in Britain.

Your brilliant businesses generate the profits and jobs that are so important to the future of our country.

Often in the hardest of circumstances.

So thank you.

I know times are still hard for many small businesses around our country.

But I also know that if we are to succeed as a nation and build a country that truly works for all your success is absolutely vital.

And over the last five years we have sought to work with you led by our Shadow Business Secretary, Chuka Ummuna, and our Shadow Minister, who was himself a small business owner, Toby Perkins.

We have listened and are determined to build a Britain that supports your desire to grow, make profits and help create a better future for our country.

And today I want to set out our agenda which we would implement if we won the general election.

I want to be clear at the outset: we will only change things when there is a gain from change.

To give one example: this government abolished Regional Development Agencies and put Local Enterprise Partnerships in their place.

The easy thing to do would be to kick over the traces and return to where we were before.

We won’t. We will build on what is there.

This is the common sense approach that I want to characterise what we do.

But we do think there needs to be change.

Cutting the costs you face.

Standing with you against those who seek to take advantage.

Reforming our banking system so you can get the finance that supports you.

And giving you the skilled workforce you need.

Let me start with the costs of doing business.

Small businesses up and down the country have told me about the impact which business rates have upon them.

Rates have increased by an average of £1,500 since 2010.

For many of you, business rates have gone up but your incomes or property values have fallen.

Sometimes business rates are higher than rents.

That’s not right.

We support this government’s review into business rates.

But I want to go further.

When it comes to cutting taxes for businesses we will put small business first in line.

So if we win the election, we will straight away cut business rates.

And then freeze them again the next year.

Saving an average of £400 for 1.5 million properties.

But that is only the start.

Too often small businesses are not getting the treatment that they deserve from government or sometimes from larger businesses.

Take energy.

Eighteen months ago I said we needed to deal with what was happening in the broken energy market.

On behalf of millions of families and businesses.

Events since then, in my view, have proved that we do need to act.

We have seen a 20 per cent fall in wholesale prices over the last year, but your bills have fallen by only a fraction of that.

So we will freeze your energy bills until 2017, so prices can only fall and cannot rise.

And by this winter we will also give the regulator the power to cut bills so that wholesale price falls are passed on to you.

And it is not simply the headline price that we need to deal with.

But also the practices that have been allowed to go on for too long.

We will legislate to give small businesses equal protection to households in the energy market.

We will end rolling over contracts without consent.

We will place a requirement on energy companies to take into account the ability of small businesses to pay off debts.

And the new regulator will be given a clear remit to protect the interests of small businesses.

Standing with you also means dealing with the scandal of late payment and charges.

This is a national scandal.

According to the government’s own figures, 44 per cent of small and medium-sized businesses had a problem with late payments last year, with the average small business being owed over £30,000.

The FSB’s manifesto for the next government sets out how late payments hamper your ability to invest and grow, and how in some cases it can threaten your very existence.

The last Labour government gave small businesses the right to charge interest on late payments.

But too many small businesses can’t enforce the rights that you have.

And I know you often worry about your relationship with large suppliers.

As I announced at this conference last year, the next Labour government will give business organisations like the FSB the legal right to represent you.

And we will go further.

We will bring in requirements for large firms to report on their record on late payment, including the action they have taken to compensate their suppliers.

And I am pleased that this is something endorsed by the government today.

But of course recent events have highlighted another problem which needs dealing with too.

Pay or stay charges from large firms for you to join or stay on their supplier list.

I know we all believe in a simple principle: you should be paid for the product that you produce, not face what the FSB have called “supply chain bullying”.

I can’t be clearer about this: this is wrong and it must end.

And if it is necessary to legislate to end it we will.

Business Rates, energy bills, late payments and unfair charges are just four of the challenges facing small businesses.

Government constantly needs to learn from you about what would make life better for small business.

Which is why we will establish a Small Business Administration.

Based on the one they have in the United States.

Putting the interests of small businesses right at the heart of government.

Fighting your corner.

Standing up for you.

And holding government to account for the way it treats small business.

The Small Business Administration will have remit to ensure regulations are designed with small firms in mind.

And one change also know we need is in respect of how HMRC works.

Many of you have told me that HMRC seems to treat businesses like yours one way and some large firms another.

You pay taxes on your hard earned profits and they chase you for every penny.

And I know how frustrating it is when by contrast some of the largest of firms don’t seem to play by the same rules.

That’s why we’ve announced a review into the customs and practices of HMRC.

We are determined to end the situation where you pay more because some are not paying their fair share.

So we will reduce business rates, we will stand with you when the public and private sector doesn’t play fair.

And we want to have a banking system that properly supports you.

Too often businesses like yours are made to feel like you serve the banks, rather than the banks serving you.

So we will create a British Investment Bank to support new regional banks.

The purpose of these banks will be very specific, learning from other countries: to provide lending to small and medium sized businesses.

Helping businesses wherever they are in our country and helping rebalance our economy.

And we will have a market share cap so we can have more competition in business banking on the high street.

Finally, I know that you care deeply about your workforce.

And it’s not just finance that you need to innovate and grow.

It is skilled people.

Especially skilled young people.

That’s why our plan has at its heart, this idea:

Not only training and education for some of our young people, but training and education for all of our young people.

In vocational and not just academic qualifications.

Turning round a decades-long problem of the failure to recognise that both matter to the future of our country.

Work experience returned to the curriculum.

Maths and English until 18.

A new gold standard Technical Baccalaureate.

And introducing new technical degrees at our universities.

So our young people know what they are aiming for and firms can get the specialist skills they need.

Overturning the idea that there is some iron curtain between vocational and academic education.

So this is what we offer.

Fairer business rates as part of a fairer deal for small business.

Your voice at the heart of government.

Access to finance.

The skills you need.

All of these plans are underpinned by a plan to reduce the deficit every year.

And balance the books.

Because economic stability matters for you. 

That does mean reductions in public spending, outside key areas like education and health.

Cutting costs as you have done over the last few years.

Let me say this in conclusion:

I know so many of you work all the hours God sends for your businesses.

I know that whatever happens at the next election you want a government that respects your efforts and seeks to do all we can to make life that little bit easier.

That is what the next Labour government would seek to do.

And just as we have had dialogue with the FSB and you in opposition, so we would continue into Government.

Because what I know is that to create a country that truly works for all we need public and private sectors working together and your voice at the heart of what government does.

Thank you very much for your time today.

ENDS