[Re: Why Labour is the natural party of small business and entrepreneurs, Wednesday]
While Chuka Umunna’s vision for small business is admirable, his ideas smack of the same old political rhetoric. Half-baked measures and ill thought-out plans are hardly sufficient to mend the problems facing British business. A temporary VAT cut will not deliver long-term growth. And a British investment bank will simply undermine the ability of existing lenders – that still provide the majority of lending – to offer credit at reasonable market rates while reflecting the risks involved. Umunna’s ideas are just more political gimmicks.
I appreciate Chuka Umunna’s history, and agree with his suggestion that the school curriculum should include some element of business education or entrepreneurship. But his other suggestions will only worsen inefficiencies in small businesses. By providing too much government support, firms fail to grow up and compete. True entrepreneurship demands absolute doggedness against all odds, not freebies.
Umunna is living in cloud cuckoo land. If Labour gets in again, the party will borrow even more money and eventually bankrupt the country. That isn’t exactly conducive to business success.
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