Stratford’s small businesses want more support from government
THE Labour government is “anti-business”.
It may seem a harsh statement, but that was the feeling among some business owners on Friday (21st March) who felt Labour’s policies were making life harder for them.
The national insurance hike was the most obvious example given, but there were also grave concerns about the lack of support for apprenticeships, the ability to recruit – and retain – talent in rural south Warwickshire and an economy that is failing to steady the nerves of people wanting to invest. Add to the mix a commercial property market that leaves small businesses vulnerable to large rent increases and you have an environment that makes doing business difficult.
The frustrations were voiced to Stratford MP Manuela Perteghella (Lib Dem) during a Q&A session at a meeting of BNI – an organisation that’s just getting its Shakespeare branch up and running (see panel).
Around the table at Stratford Park’s riverside restaurant in Tiddington where founder members of the new group as well as guests. The business interests were diverse; from office supplies and a taxi service to a podcaster and a chartered accountant. That accountant was Rachael-Ann Harrison, of Chadwick Accountants and Bookkeepers, in Bidford, and her remark about the government being anti-business gained echoes of support from elsewhere in the room.
Her first concern was about high level apprenticeships.
“We’ve been offering Level 7 apprenticeships to gain chartered [accountant] status. It costs a lot of money. You’re talking £30,000-plus, but we’ve only had to pay five per cent, which has been great from our perspective. These are being pulled. What can I offer them? I can’t afford to put £30,000 on the table for them. And, you know, they’re just going to move away from Warwickshire. They’re going to go to Birmingham, they’re going to go to Manchester, to London. They’re going to go to bigger firms who can support that cost, not smaller firms. That’s what I’m concerned about.”
Another area of concern, not just for Rachael, but also for her clients, was NI.
When the question was asked “how many of you have been affected by the hike in national insurance contributions?” she replied, “Massively. And 400 clients.”
She added: “Some are being put out of business from it.”
Manuela told the group, regarding apprenticeships, that she was on the Education Select Committee which was looking at changes to post-16 education and called for examples she could carry forward as evidence for the committee to consider.
On the NI question, her solution was to push more tax burdens onto the digital tech giants; the corporations such as Meta and Google which make vast profits while “failing to keep our children safe online,” she said.
“There are other ways of raising money, which, for me, it’s getting the digital tech giants to pay more,” Manuela said. “They are not going to worry about it, they can contribute more because they are making a lot of money – billions and billions.
“Zuckerberg will never be able to spend it all. His children will never be able to spend it.”
She added: “Also, I have a grudge against them, because they are not keeping our children safe. So mental health care could actually be funded by part of this digital tax.”
Other issues discussed during the Q&A included local business support (try Coventry and Warwickshire Growth Hub), local government reform and whether the public will be given a say (Manuela is lobbying for South Warwickshire unitary authority) and youth provision within the district as well issues of anti-social behaviour and homelessness.
The conversation also turned to Stratford town centre, empty shops and commercial premises rents in general. James Brookes, of Complex Development Projects Ltd, explained how his company had been bringing old buildings back into use in Leamington for the creative sector, one being the conversion of an old pub into artists’ studios. They worked with Warwick District Council which has taken “a 25-year lease of 50 per cent of market rent, so we’ve then used Warwick’s covenant strength to enable 50 per cent of market rent to be charged back to the artists for 25 years and give them a home”.
James added: “It’s a really good process and shows the models that are coming out of the creative quarter in Leamington, but nothing like that has been delivered in Stratford.
“There’s a fundamental problem with Stratford that actually in all of the various markets, so if you look at your industrial market, your office market, your retail market, there really isn’t a market in any of those in Stratford. And that’s where the problems lie, I’m sure.”
James has drawn up a strategy for Stratford town centre and proposals to revive the BHS building.
Manuela also revealed that the government is running a pilot scheme, the high street rental pilot, that gives more powers to local authorities. I’ve asked for it to be in Stratford [as it gives] local authorities more power to actually take over empty buildings.”
This, of course, brought up again that long-standing blot on the landscape, the BHS building, and the concern about “greedy” commercial landlords who prefer to keep a unit empty rather than reduce the amount they want to charge.
“They need to be penalised, they need to be taxed,” said Manuela who added that she had struggled to find an office in Stratford at an affordable rent.
There were calls from the business owners for better protection against rent hikes – and examples of rents doubling at the end of a lease.
It was, however, pointed out that the commercial market is complex and landlords have been left to pick up the costs of making sure their buildings meet environmental standards.
“From a commercial property landlord’s point of view, there are massive increases on the other end of it,” said James. “For example, I’m just taking over 22 offices in Coventry and every single one of them is failing on an EPC. The investment that we need to bring it up to the market, so we’re talking about A-class, is probably £80,000 per office. I’ve got clients in the same boat. They want to develop these properties, they don’t want them to be empty but the actual cost to bring them up, because of legislation, is horrendous. They can’t afford to do it.
“So what do they do? There is no fund, no assistance. So I think the government should incentivise commercial landowners and businesses that own a property to decarbonise.”
The conversation went full circle and back to the need for the government to provide more support for business.
What is BNI
FOR anyone not in the know, BNI is an international organisation that brings businesses together to help generate more business.
Only one person from a particular profession is allowed to join and the aim is to help each other with business leads that generate income.
According to the website, last year the members of BNI UK reported income in excess of £521 million in new business.
The Shakespeare chapter has not been officially launched just yet – they are aiming to have 20 founder members in place first.
The 10 who are already paid-up members have already started networking with guests and asking for – as well as giving – support, contacts and leads to their fellow members.
Anyone interested in joining, or going along for a visit, can get more details from www.bni-warwickshire.co.uk.
