Press release

Friday 22nd March 2013

For immediate use

Chuka Umunna speech to Federation of Small Businesses Annual Conference

-Check Against Delivery-

Chuka Umunna MP, Labour's Shadow Secretary of State for Business, Innovation and Skills, in a speech to the Federation of Small Businesses Annual Conference, said:

This is the first time I have addressed your Annual Conference and it is a real honour to be asked to do so.

You’ve already heard from Vince Cable and Owen Paterson and they, quite rightly, have underlined how important you are to our economy.

I echo this. And for me, what you do matters personally. My late father arrived in this country from Nigeria in the mid-1960s with little money to speak of but a huge sense of possibility.

He started off washing plates and washing cars before he struck out on his own. Over 15 years, he built a thriving import/export business. Aside from his family, that business meant everything to him. He worked night and day to ensure it was a success.

I saw that same determination representing many entrepreneurs and small businesses during my practice as a lawyer in the eight years before I was elected. I found my small business clients were hard working, determined to do the right thing, determined to succeed, and determined not to let their customers and employees down.

So I have seen up close the risks you take to create jobs, generate prosperity and extend opportunity. Thank you for what you do. We do not recognise your contribution enough, and I am determined we change that.

So I shout about the 83 per-cent of new private sector jobs that were created during our time in government by small businesses like yours and I am proud that when we left office this country was rated fourth in the world for ease of doing business, hopefully making things a little easier for you. For a Party called ‘Labour’, this matters. Supporting aspiration, extending opportunity, creating good jobs is at the core of what we believe; getting more people in jobs was why we were created. That is why today we want to see more people setting up and working in businesses.

But, I know the face of business is changing. There are almost five million small businesses today. They are all different in their own way.

There are ‘aspirants’ with an ambition to be their own boss but who face barriers in getting there.

There are the ‘traders’ - the market stall holders, shopkeepers, plumbers, craftsmen, ‘white van man’.

There are the “lifestylers’ who want work to fit around other parts of their lives like caring responsibilities, or want to start making a business dream a reality by freelancing – some freelance of course because other employment opportunities aren’t there.

Others self-define as ‘entrepreneurs’, particularly those doing business through emerging sectors and social media.

And then there are the ‘small employers’ who provide substantial employment in their localities.

We must support and encourage this diversity and also recognise that what you do goes beyond job creation. You challenge the existing order. You ensure competition in the market place. And create choice for consumers.

You innovate, producing products people want to buy the world over - you help make the British Lion roar in an ever more competitive world.

So in the future, we must do even more to help you thrive.

This starts with getting our economy moving again. Demand is weak – not for every business, but for far too many. We can create a better environment, but it needs demand too.

You will have all seen the Budget this week. We have been arguing for a proper National Insurance break for small businesses for two years now, so I was glad to see the Chancellor announce the new Employment Allowance. And the £3 billion a year extra capital spending and the establishment of Lord Heseltine’s Single Local Growth Fund – they were welcome too.

My complaint, though, is that too many of the measures kick in post 2014, when you tell me you need the support now. And there was precious little to help the High Street.

That is why we will continue to argue for a temporary VAT cut to get people placing orders with you again; it is why we will continue to push the Government to deliver on a much more ambitious infrastructure plan. A targeted stimulus now to kickstart the economy, get the unemployed back to work.

The Government’s official forecaster said this week that deficit reduction has stalled. Despite all the cuts and tax rises the Government’s borrowing this year will be at the same level as last year, and next year at the same level as this too. Only getting growth back will allow us to reduce borrowing.

But we will only build a sustained recovery which raises living standards if we also ensure there is a much better environment to do business in.

In Liverpool a few weeks ago I was talking to a businessman who told me that to register your company, you’d need to reinforce your post box given all the forms you are sent to fill in. Some young entrepreneurs in London who are in the process of setting up a web app business told me this week that it has taken them three weeks just to set up a bank account. Others, tell me it takes a month to set up a broadband connection. This is not acceptable and has to change.

That is why we asked a group of business people – our Small Business Taskforce - to produce a report for business people by business people to tell us what we need to do to remove the blockages for you. And I thank the FSB for all the assistance you gave to the Taskforce.

We published their report last week. It is bursting with 100 ideas. Practical measures from those who know, all aimed at making Britain the best place to start, run and grow a business.

Top of the list of the problems you’ve said is finance.

We need far more competition and diversity in the small business lending market if we are to transform the service you receive from them. It cannot be right that around 90 per-cent of small business lending is concentrated in the hands of just five High Street lenders. So I welcome new entrants like Handlesbank and Aldermore.

Next year Nationwide Building Society will enter the market - with its mutual model you, the small business customer, would co-own that bank which could help drive a culture change. We need more mutuals in this small business space for that reason.

But, this alone won’t solve the historic problems which pre-date the financial crisis. Let’s do what every other G8 economy has done and set up a state backed investment institution to get credit to small businesses where others won’t, by establishing a proper British Investment Bank.

Its funds could be given out through a new network of regional banks which, last week, Ed Miliband announced we are looking to establish. Like the German Sparkassen, they would represent a return to local relationship banking, with managers who know your needs with discretion to make local lending decisions.

And much more needs to be done to promote non-bank lending too - from equity to new peer-to-peer models. With this in mind, across Britain Labour councils are innovating with new ways of supporting small businesses. So today Labour run Camden Council has announced a joint endeavour with peer-to-peer finance firm Funding Circle, allowing the local authority to invest directly in its local small businesses. This is an exciting opportunity which we want to see expanded - our aim is for at least ten Labour Councils to sign up with Funding Circle by the end of this year.

But access to finance is one thing, cash flow is another. Too many small businesses are effectively bankrolling bigger businesses that refuse to pay them on time. This is outrageous.

In government we legislated so that late payments can incur interest, and we established the Prompt Payment Code. But I know how hard it can be to challenge your own customers.

So, the next Labour government will expose those who pay late and we will seek to put in place a regime that will automatically trigger action against late payers, perhaps by preventing them winning public contracts and through reporting requirements on payment performance in their company accounts.

You talk to me about skills: the lack of technical and engineering skills, as well the need for young people to have the right attitude for work and to be “job ready”.

We agree. So we will put the money into the hands of, you, the employers. But with control of the money there will be a shared responsibility – on business and government - to train and retrain the workforce.

I have already mentioned infrastructure. It is crucial that, in all its forms, it supports small business and treats you fairly as consumers – from access to superfast broadband to a fair deal in the energy markets.

On digital infrastructure, we will follow the recommendation of our Small Business Taskforce and ask Ofcom to investigate how BT and other providers can deliver broadband within a week as standard. We will consider the Taskforce’s proposal of an e-commerce Ombudsman as well.

On energy, small businesses consume like residential consumers but you get nowhere near the same protection. Myself and Shadow Energy Secretary Caroline Flint want to change that. Under a Labour government energy companies will be banned from rolling small businesses over onto more expensive tariffs without their consent. Back-billing will be limited to one year, not six; and we will require realistic repayment plans for small businesses that fall behind, not immediate demands for full repayment.

It would be remiss of me not to say something about regulation.

In every major election politicians of different parties have promised to cut red tape. But I think you are fed up of politicians making overblown promises about this, when your practical experience suggests otherwise if and when we get into office. I want to be upfront with you on this: the conversation about regulation is too crude in my view because it’s about the quality not just the quantity of regulation – both are important.

Also, regulation per se is not always a bad thing – for example, I have just mentioned ensuring the energy companies serve you better - that involves better regulating them.

And, as a former employment lawyer, I totally understand the worry employment law can cause but if we go for a ‘slash and burn’ approach to your employees rights at work, I fear it will hit consumer confidence. Employees worried out of their wits about keeping their jobs do not go out and spend much in your businesses in my experience.

So we will adopt a balanced approach to this issue and reform where needed which is why I welcomed the Underhill Review into the Employment Tribunal Rules of Procedure.

With regard to exports, if we are to pay our way in the world, it is no good us urging more small businesses to export if the support is not there. There is a huge amount of demand out there in the global economy, which is set to double through emerging markets. Our businesses – you – need to have your share of this pie.

A straightforward thing we are looking at doing is establishing a network of ‘export hubs’ in major overseas cities, as recommended by our Taskforce, which UK firms could use as an office base and place for meetings and research.

Finally, I believe that we need to transform the way in which central government serves small businesses. On finance: there are lots of disparate schemes and you have to search out details. They should be brought together under a single portal to improve access and awareness – a simple thing Government can do which will make it much simpler for you

And, our new approach to small business, which reflects the changing nature of small business, is why today I say I believe there is very strong case for the establishment of a Small Business Agency, along the lines of the Small Business Administration in the US. I have met senior SBA officials several times and believe an equivalent agency could be set up here under the auspices of the Business Department to drive a small business agenda across the whole of government.

What I have just outlined is not an exhaustive list but I hope it gives you an idea of our programme for small business in government.

However, until the election, we continue to serve as Her Majesty’s Loyal Opposition - but I don’t believe we have to wait for government to actively champion small businesses.

A small but effective thing we can do is establish a UK Small Business Saturday. In the US, Small Business Saturday takes place on the first Saturday after Thanksgiving celebrations, one of the busiest shopping days of the year. It is used to celebrate and showcase small businesses’ contribution to their local economies and to encourage people to shop at small independent businesses in their local area – it boosted spending in small independent businesses by .5 billion last year. So we are building a movement to make Small Business Saturday a reality here – it will start on Saturday 7 December this year.

A Small Business Saturday in the UK is something all local authorities could support and promote. Administrations in Manchester, Birmingham and London are already supporting our campaign to do this along with seven business organisations, including the FSB, representing over 370,000 businesses.

So, to conclude: it is tough out there but because I see so much drive, passion, great customer service and innovation in small businesses all over the country, I am hugely optimistic about your ability to meet the challenge.

It is why I want to help.

It is why you will only ever hear me talking you up, not down.

It is why it has been such a great privilege to speak to you today.

Ends

Rais Jakaya Kikwete amemtumia salamu za pongezi nyingi Rais Mteule wa Jamhuri ya Kenya, Mheshimiwa Uhuru Kenyatta.

Rais Jakaya Kikwete

Rais wa Jamhuri ya Muungano wa Tanzania, Mheshimiwa Jayaka KMrisho Kikwete amemtumia salamu za pongezi nyingi Rais Mteule wa Jamhuri ya Kenya, Mheshimiwa Uhuru Kenyatta.

Katika salamu hizo zilizotumwa leo, Jumamosi, Machi 9, 2013, saa chache baada ya kuthibitishwa rasmi kuwa Mheshimiwa Kenyatta ameshinda Uchaguzi Mkuu wa Kenya uliofanyika mwanzoni mwa wiki hii Jumatatu, Machi 4, 2013, Rais Kikwete amemwambia Mheshimiwa Uhuru Kenyatta:

“Mpendwa Rais Mteule na Kaka, ilikuwa ni furaha kubwa kwangu kupokea taarifa ya ushindi wako wa kuchaguliwa kuwa Rais wa Jamhuri ya Kenya. Niruhusu, kwa niaba ya Serikali na Wananchi wa Tanzania, na kwa hakika, kwa niaba yangu binafsi kukupogenza kwa dhati ya moyo wangu kwa mafanikio haya makubwa ya kuchaguliwa kwako.”

Ameongeza Rais Kikwete: “ Ushindi huu ni ushahidi na ishara ya wazi kabisa ya imani na matumaini ambayo wananchi wa Kenya waliyonayo katika uongozi wako. Huu ni utambuzi wa kazi yako maridadi na mchango wako mkubwa ambao umeutoa katika nafasi mbali mbali za uongozi katika siku za nyuma katika jitihada zako za kuleta maendeleo ya kiuchumi na kijamii na ustawi wa nchi yako na wananchi wake.”

Amesisitiza Rais Kikwete: “Wakati unajiandaa kuchukua madaraka ya juu zaidi katika nchi yako, napenda kukuhakikishia msimamo wake binafsi pamoja na ule wa Serikali yangu wa kuunga mkono Serikali yako. Ni imani yangu kubwa kwamba pamoja tutaweza kuendelea kusukuma mbele zaidi maendeleo ya nchi zetu – Kenya na Tanzania na pia utengamano wa Afrika Mashariki kwa manufaa ya nchi zetu na wananchi wake.”

Imetolewa na:

Kurugenzi ya Mawasiliano ya Rais,

IKULU

DAR ES SALAAM

Results of Elections in Kenya

Press Statement

John Kerry
Secretary of State

Washington, DC

March 9, 2013

On behalf of the United States of America, I want to congratulate the people of Kenya for voting peacefully on March 4 and all those elected to office. Across the country, Kenyans turned out by the millions to exercise their most fundamental democratic right. I am inspired by the overwhelming desire of Kenyans to peacefully make their voices heard, and I applaud the patience they have shown as votes were tallied.

Foremost in our minds is a desire to see the will of the Kenyan people expressed freely and fairly. We strongly urge all parties and their supporters to peacefully address any disputes with today’s announcement by the Independent Electoral and Boundaries Commission through the Kenyan legal system, rather than on the streets. These elections are an historic opportunity for the people of Kenya to come together to build a better future. Since its independence in 1963, Kenya has been one of America’s strongest and most enduring partners in Africa. We stand with you at this historic moment and will continue to be a strong friend and ally of the Kenyan people.