Cameron reaches out to small business

The Conservatives' launch on Monday of a manifesto for small business was intended to counter claims that their main focus is on big companies and to position them as best placed to help smaller firms too.

While big business worries about corporation tax, intervention in markets and the impact of a referendum on EU membership, smaller firms are more interested in faster payment of suppliers, better broadband access and business rate reductions.

As a result David Cameron dwelled in his speech to small business leaders in north London on promises to keep taxes low, cut red tape, treble the number of start-up loans and invest in infrastructure like fast broadband.

"We are the party of the grafters and the roofers and the retailers and the plumbers. We get them, we respect them, we understand them, we back them," the prime minister said.

The Conservatives have pledged to increase the number of new businesses to 600,000 a year by 2020 from 350,000 in 2013. Among specific promises were commitments to keep the employment allowance (a reduction in national insurance contributions) until 2020 and to introduce a higher permanent level for the annual investment allowance.

Members of the target audience mostly welcomed the proposals, but added they wanted to see them delivered quickly.

"The Tory manifesto is a good foundation for small businesses but the question is what next," said Tim Ward, chief executive of the Quoted Companies Alliance. "The next stage is to concentrate on the 'M' in SME, I mean the midsized companies for whom temporary bank finance isn't the long-term answer."

While the CBI said some of the measures would "further cement the recovery", the Federation of Small Businesses, which has 200,000 members, refused to comment on the manifesto's specific pledges, saying that it did not want to be seen to endorse any party in the run-up to the general election.

"We welcome the focus all parties are giving to small businesses," said Mike Cherry, FSB policy director. "The UK's 5.2m small businesses have . . . led the way in creating jobs and driving growth. Given the right environment, they will continue to do so in the future."

Mr Cameron and his party won an endorsement on Monday from more than five thousand small business owners, who signed a letter published by the Daily Telegraph saying they would like to see Mr Cameron and chancellor George Osborne "given the chance to finish what they have started".

The letter was organised by Baroness Brady, star of The Apprentice and a Conservative peer. It provoked a social media flurry after the managing director of one Berkshire-based company, Aurum Solutions, said she had not authorised the use of its name.

"The news that 5,000 businesses signed a letter of support for the Conservative party bodes well for the party, although the fact that the letter was orchestrated by Tory peer Karren Brady slightly overshadowed its value," said Nick Ayton, managing director of GenLife, a pensions and savings provider.

A Conservative party figure said: "[The letter] was on our website and it was always there and if people wanted to sign it they could sign. Labour . . . couldn't get 5,000 businesses to sign up."

Some business figures said the Conservatives still needed to do more.

"There has been considerable disquiet among [our] small business [members] that the leaders of the main parties have been chasing headline-grabbing opportunities rather than concentrating on long-term growth and strategic vision," said Jerry Blackett, chief executive of Greater Birmingham Chambers of Commerce.

"I have been unaware of any initiative that works over the past five years to help small business get better access to finance from banks or indeed support in any positive way," said Anthony Diver, managing director of MosquitoDigital, a Manchester-based digital marketing agency.

Other small business owners were more positive.

Andrew Jacobs, chief executive of Lok'nStore, said the self-storage company had benefited from policies designed to help small businesses grow, like EIS tax relief; the removal of stamp duty on AIM shares, and business property relief for inheritance tax.

"Lower corporation tax and entrepreneur's relief have helped people cross the Rubicon and decide to start businesses, which employ people, who pay tax," he said.

The FSB has asked that a new government reduce business rates, conduct a full public inquiry into the problem of late payments and set up a body to give small business a formal voice in government.

Michael Weedon, deputy chief executive of the British Independent Retailers Association, said a "permanent change" to the business rates system was needed. "Labour said it will cut and then freeze the rate. The government has identified and drawn a line around the problem and offered temporary discounts and rebates. But we need a permanent solution," he said.

The coalition government has already pledged new rules on late payments, promising to extend the prompt payment code, for example in relation to the use of supplier lists. The Labour party has said it will tackle "supply chain bullying", has promised to establish a small business administration body, to cut business rates for small companies after taking power and to freeze rates for the following year. It has also pledged to reverse the recent 1 percentage point cut in corporation tax introduced by the government.

Additional reporting by Elizabeth Rigby

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