Small businesses are the backbone of our local economy.

The Green Party is calling for a series of measures to help small, independent businesses and social enterprises green their operations, improve employee welfare and make it easier for people to shop local.

Small businesses are the lifeblood of communities and help make our towns and cities diverse, distinctive and unique. However, many are having to deal with the devastating consequences of rising energy prices and the cost of living crisis.

It is crucial that both national and local government help small and independent businesses to survive and ultimately thrive. Greens are calling for business rates reform as well as extending and expanding the small business rate relief scheme. The specific demands on support for greening businesses and supporting employee welfare do not ignore the need for such reforms, which are long overdue.

The Green Party is calling for a number of measures to support small businesses:

  1. Grants to insulate small businesses to cut energy bills and emissions. Small businesses are crying out for a long-term solution to their energy bills that goes beyond the government’s short-term and inadequate support. The cost of running a small business is set to shoot up even further in March, when the government’s current support scheme ends. We want to see the government instead expand their energy support for businesses by providing grants for insulation. This would benefit small businesses massively, reducing their energy use, operating costs, and emissions. As the portfolio holder for the environment at the Folkestone & Hythe District Council, Green Cllr Lesley Whybrow has introduced Green Business Grants. More information here: Green Business Grant Scheme – Folkestone Works

  2. No small business should pay higher business rates as a result of greening their business. The government should incentivise rather than penalise small businesses that are tackling their carbon emissions and making their operations more sustainable. Beyond the grants for insulation, there should be a clear list of items/actions that businesses can implement without fear of increasing their business rates including, but not limited to fitting solar panels, introducing recycling facilities or schemes, building bike sheds and putting in employee showers and changing rooms.

  3. Small business should be supported to improve employee wellbeing. Government should support businesses in making the wellbeing of their employees a priority. Measures should include exempting all childcare providers in England from business rates, in line with Scotland and Wales; increasing employment allowance to at least £5,000 to help the smallest employers; and ensuring no business is penalised by higher business rates when they implement Covid-safe measures such as ventilation systems.

  4. Reform VAT to support small businesses and suspend Covid loan repayments. The temporary VAT holiday was a welcome break for small businesses but there needs to be a review of our VAT system so that it differentially supports smaller shops and businesses compared to larger and online businesses. Similarly, Covid loans were a great help for businesses during the pandemic lockdowns, but repayments are now adding to the financial strain of the cost-of-living crisis. Repayments of Covid loans should be suspended to provide much-needed relief to businesses.

  5. Creation of Virtual High Streets. Councils should work with small and independent businesses and help create ‘Virtual High Streets’ so residents within a district can use an online portal to enable them to buy from participating local shops and have items delivered on the same or next day. Schemes like this are already operating in both Brighton and Lewes where Greens are in power. In Herefordshire, Green councillors have worked with local businesses to enable a prepaid card loaded with £15 to spend with local businesses – a great way to encourage people to shop local.