SME4Labour Roundtable: Amplifying the Voice of Small Businesses Amid Legislative Change

SME4Labour recently hosted a timely and impactful roundtable bringing together SME leaders, industry experts, and policymakers to explore the urgent challenges and opportunities facing small and medium-sized enterprises across the UK.

The session focused on two core areas: the key findings from SME4Labour’s latest research into the current business climate, and the practical implications of the Employment Rights Bill for SMEs. What emerged was a powerful and sobering snapshot of the pressures SMEs are under—and a renewed commitment from SME4Labour to ensure their voices are not just heard, but acted upon.

Key Issues Raised by SME Voices

Throughout the discussion, SME representatives voiced concerns across a range of areas:

• Rising Labour Costs and Tax Burdens: Many participants highlighted the cumulative pressure of increased National Insurance and the recent wage hikes. For small, independent retailers in particular, the cost of passing these changes onto customers is unsustainable. Several noted that “the maths just doesn’t work anymore,” with one stating bluntly that sustainability is in danger.

• Unequal Treatment Compared to Larger Corporations: A recurring theme was the growing sense that government support disproportionately favours larger companies, leaving smaller firms to navigate complex legislation and economic strain without adequate support. One participant summed it up: “Different rules for the big boys, different rules for us.”

• Navigating New Legislation: The Employment Rights Bill was described by some as a “new nightmare” for small business owners. Concerns centred around unclear provisions, the cost of compliance, and how to effectively manage their workforce under the new rules.

• Tax Pressures and Future Viability: Tax liabilities, including for those using platforms like Vinted, eBay and Amazon, are pushing SMEs to question whether they can afford to stay in the UK at all. Some attendees shared that they are actively exploring relocation due to the hostile tax environment.

• Lack of Support for Entrepreneurs: There was a strong consensus that entrepreneurs feel increasingly abandoned—lacking both financial support and access to business mentoring. “It feels like the government only takes, but gives nothing back,” one business owner said.

• Mental Health Strain on Business Owners: The stress of surviving in this environment has begun to take a toll on SME leaders’ wellbeing. Several spoke candidly about the mental health implications of trying to keep a business afloat with little support and constant pressure.

Recommendations and the Way Forward

SME4Labour’s report and the roundtable feedback underscored a number of clear recommendations:

• Adjust business rates to ease the burden on high street premises.

• Provide tailored tax incentives that reflect the real risks faced by small businesses.

• Ensure SME-specific thresholds and classifications are used in future policy.

• Introduce financial and mentoring support programmes for entrepreneurs.

• Centre local communities in the policy agenda, especially when appointing a small business minister.

• Recognise the role of SMEs in mental health policy and provide support resources.

Our Commitment

As SME4Labour, we are committed to being the voice of SMEs within the Labour movement and beyond. We have taken careful note of every concern, recommendation and lived experience shared in this session.

Your struggles are real, your insights matter, and your voices will be carried forward into our policy work. This roundtable was not the end of the conversation—it’s part of our ongoing mission to ensure SMEs not only survive but thrive in a fairer, more supportive economic environment.

We thank everyone who attended and contributed so openly. Together, we will continue to champion the cause of small businesses across the UK.