Keir Starmer's ministers accused of lacking business experience

Just one in eight Government ministers have worked for a small or medium-sized enterprise in the last 10 years, figures have revealed. Only two of the nine Government front-benchers with recent careers in SMEs have worked in businesses outside of politics, public affairs or law.

Care Minister Stephen Kinnock and Technology Secretary Peter Kyle are understood to have hands-on experience in the last decade with SMEs outside of those sectors.

Andrew Griffith MP, Shadow Business Secretary, said: "Labour Ministers have very little business experience between them and it shows. It would matter less if they listened but ever since they took office it has been all out war on private enterprise to the extent not a single real business still backs them publicly.

"With unemployment rising, taxes at record highs and regulations throttling growth everyone is now paying the price."

Besides Mr Kyle, Trade Policy Minister Douglas Alexander MP also built his own business in the last decade, founding political consultancy Consequitur Limited.

Six Government ministers with recent histories in SMEs have careers concentrated in politically-adjacent sectors, the analysis by financial institution Iwoca found.

The current Health and Social Care Secretary Wes Streeting, for example, worked as a freelance political consultant before entering Parliament in 2015.

The analysis comes ahead of the Government's long-awaited Small Business Strategy, a consultation on small firms' access to finance, as well as the Employment Rights Bill.

Christoph Rieche, CEO and co-founder at Iwoca, said: "My message to small business owners is this: this government is very committed to setting economic growth as their priority. "While few of the ministers have led small businesses themselves, they are keen to listen and understand what's holding your business back. Engage with them, participate in the consultations to help them solve your problems."

Ministers will on Thursday announce plans to tackle late payments for SMEs, an issue that costs the UK economy £11billion a year and shuts down 38 businesses every day.

These firms employ 60% of the country's workforce and generate £2.8 trillion in turnover, the government said.

But late payments cause cash flow problems that stop firms from scaling up and investing in their future.

The Small Business Commissioner will be given new powers to carry out spot checks and enforce a 30-day invoice verification period to speed up resolutions to disputes. The upcoming legislation will also introduce maximum payment terms of 60 days, reducing to 45 days, giving firms certainty they will be paid on time.

A government spokesman said: "We completely reject these claims. This government is taking bold action to back small businesses and give them the tools they need to grow, and today we are launching the most significant package of reforms in a generation to tackle late payments, with a brand new small business plan which introduces the toughest laws on late payments in the G7.

"This builds on the solid foundation of certainty and stability this government has already delivered - through the historic trade deals we have secured, four interest rate cuts, as well as a long-term industrial and trade strategy that's helping businesses plan ahead with confidence."

ENDS