SME4Labour breakfast
Monday 19 October 2026 · Troia Southbank
SME4Labour breakfast: Dan Tomlinson MP discusses growth and support for small businesses
Business rates, late payments, access to finance and public procurement were central to a breakfast roundtable with Treasury minister Dan Tomlinson MP, chaired by Feryal Clark MP.
Small businesses, trade bodies and policymakers gathered at Troia Southbank on Monday 19 October for an SME4Labour breakfast roundtable with Dan Tomlinson MP, Exchequer Secretary to the Treasury and Minister for Growth, in conversation with Feryal Clark MP.
The discussion provided an opportunity for businesses to put their concerns directly to the Treasury ahead of the Budget. Topics ranged from the pressures facing high street businesses to investment, regulation, AI adoption and the role of regional growth in strengthening the economy.
Growth and living standards
Opening the discussion, Dan outlined the challenge of reversing years of weak growth and low productivity. He argued that improving living standards depends on sustained economic growth, stronger investment and greater opportunities for businesses to expand.
He pointed to progress on growth, wages and employment, while acknowledging the pressures businesses continue to face. Energy costs featured prominently, with Dan highlighting the government’s ambition to reduce industrial electricity costs and improve the UK’s competitiveness.
Throughout the conversation, the emphasis was on translating national economic progress into practical improvements for small businesses and the communities they serve.
Giving small businesses room to grow
Asked what SMEs should expect by the end of this Parliament, Dan highlighted access to finance, action on late payments and support for adopting new technology.
He discussed expanded support through the Growth Guarantee Scheme and the British Business Bank, alongside efforts to help entrepreneurs secure the funding they need to start, invest and grow.
Late payments were a particular focus. Dan outlined reforms intended to strengthen payment discipline, including a proposed 60-day limit on payment terms and compulsory late-payment interest. He described the potential impact as “an absolutely massive change for small businesses”.
The discussion also explored how AI could help smaller firms improve productivity, develop services and create opportunities. Making those tools accessible and useful to businesses with limited time and resources was an important theme.
Business rates and the high street
Business rates were among the most pressing issues raised during the roundtable. Discussion centred on the cumulative pressures facing restaurants, shops, pharmacies and other high street businesses, including rent, energy bills and property-based taxation.
Questions explored whether the current system adequately reflects businesses’ ability to pay and how government can create a fairer competitive environment between high street firms and large online operators.
Dan pointed to changes to business rates multipliers and transitional support, alongside measures aimed at tackling overseas VAT non-compliance and addressing the treatment of low-value imports.
He also placed the issue within the wider challenge of regional inequality. Spreading investment and economic opportunity more evenly across the country, he argued, would help build a more balanced economy and ease some of the pressures concentrated in London and the South East.
Businesses were also encouraged to consider the check, challenge and appeal process where they believe their property’s valuation is incorrect.
Opening public procurement to SMEs
The barriers smaller British businesses face when competing for public contracts were another major theme.
The discussion highlighted the resources required to navigate procurement processes and the difficulties SMEs can encounter when competing against much larger organisations. Feryal emphasised the importance of giving smaller firms a fair opportunity to get a foot in the door.
Dan said the Treasury, the business department and the Cabinet Office were working towards a shared objective of improving opportunities for British businesses.
He discussed changes to the approach to social value, with an emphasis on jobs and economic benefits, and the need to remove requirements that unnecessarily disadvantage SMEs. The conversation also considered how procurement decisions can be shaped earlier to make opportunities more accessible to smaller suppliers.
Devolution, investment and proportionate regulation
The roundtable examined how devolution could support investment, infrastructure and business growth.
Dan outlined plans to give mayors stronger tools to shape their local economies, including greater financial flexibility and capacity to deliver major projects. He said further detail would follow in the government’s forthcoming Rewiring the State White Paper.
Alongside the opportunities, the discussion raised concerns about inconsistent regulation between regions and the additional complexity this could create for businesses operating across different areas.
Dan agreed that devolution should not automatically lead to additional regulatory burdens. He highlighted the importance of maintaining national standards where appropriate, while allowing local areas to explore more effective and proportionate approaches.
On investment, he discussed tax incentives for growing businesses and pension reforms intended to increase the flow of capital into UK companies.
Ensuring small businesses are heard
Closing the session, Feryal asked how SMEs could ensure their experiences and priorities inform Treasury decisions.
Dan highlighted the role of organisations such as SME4Labour in bringing small businesses into direct conversation with ministers. He also encouraged engagement with mayors as an increasingly important route for businesses to influence local and national economic priorities.
His central request was for practical evidence of regulation that imposes unreasonable or disproportionate burdens. Understanding those experiences, he said, would help government identify where change is needed.
The roundtable reinforced a clear message: small businesses are central to economic growth, employment and thriving high streets, and their experience must inform the policies intended to support them.
SME4Labour thanks Dan Tomlinson MP and Feryal Clark MP for an engaging and constructive discussion, and everyone who joined us and contributed. We will continue to bring businesses and policymakers together to ensure the priorities of SMEs are heard.