Shadow Business Minister visits Plymouth to see how the South West does business

A recent visit to Plymouth by the Shadow Business Minister, Toby Perkins MP, was an opportunity for him to set out some of the policy ideas being developed by Labour in Opposition. It is very easy for people to assume that there are no policies because of the lack of coverage in the media. The truth is that every Shadow minister is working to develop policy and that involves engaging with those with the knowledge and those likely to be affected. Media space is limited and they want stories to sell papers not detailed policy work.

Time in opposition should be spent carefully working through what has been learnt from being in government, losing an election and tackling changing circumstances. I am therefore a little surprised that after 13 years in opposition, this current government is making policy on the hoof and with so little detailed research, much of it has unravelled. Hence caravan tax, pasty tax, granny tax and bedroom tax, all of which have either required major U-turns or have been cancelled.

One area where change simply hasn’t happened is in the finance and lending to small business. This has been a major concern and there is little evidence from businesses in Plymouth and the South West that things are getting any easier. The detailed survey which was carried out ahead of the Shadow Minister's visit suggested that lending, or rather the lack of it, was the biggest problem for small business. We know that 90 per cent of job creation is coming through this sector and so we really need to focus support there. Growth and small business goes hand in hand.

Toby Perkins' visit involved meetings with members of the public and businesses. He wanted to seek views on proposals which Labour is considering, including a local or regional bank. A task force was set up by Labour leader Ed Miliband to see whether the lending principles of the German Sparkassen could be adapted in the British context. We are not proposing a direct copy but something which works for us. Toby talked through the proposal which would mean that funds from government and business would be managed locally by people who know the area and the business within it. No more distant call centres in London or even abroad.

As a constituency MP I have had far too many cases of local businesses coming to me telling me that they can't get support, despite having order books which are healthy, because they are speaking to a distant call centre which doesn't understand their business or the market potential. Indeed one was about to close, with the loss of 100 jobs, just before Christmas last year. Fortunately a solution was found, but too many businesses are facing similar issues and need help and importantly a person to speak to - face to face.

The Shadow Minister took back wider concerns about the relative strength of Local Enterprise Partnerships and the way in which they differ from region to region. It is very difficult to overlay what works in the West Midlands onto the South West. I hope that on the back of this visit we shall be able to welcome other members of Labour’s business team to the South West so that they can see for themselves both the positives of supporting us to ‘do business’ but also the challenges. It is vital that Whitehall understands our region and that any future government also appreciates what we have to offer.