Liberal Democrats growth plan targets Brexit damage and SME
The Liberal Democrats have launched a 30-page business growth plan proposing tax cuts, a new digital one-stop-shop, and a dedicated Department for Growth
Daisy Cooper MP launched the Liberal Democrats’ 30-page 'Plan to Get Britain Growing Again', proposing reforms to address Brexit damage and SME financing challenges. The detailed, 73-bullet-point document aims to cut red tape, reduce compliance costs, and support innovation, including lower national insurance for part-time workers and young people.
The party proposes breaking up the Treasury and creating a new Department for Growth in Birmingham, merging the Department for Business, Innovation, Science and Trade into it. Daisy Cooper MP said "the economic damage of Brexit is currently costing the UK £90bn a year in lost tax revenue." The plan includes joining the European Free Trade Area and European Economic Area, and negotiating a UK-EU Customs Union to reduce regulatory burdens.
Digital Support Initiative
The growth plan includes creating a digital one-stop-shop service for businesses and investors. This service would cover tax, regulatory, legal, Companies House, and general business services in a single portal.
SME Financing and Investment
The plan directly addresses financing gaps for small and medium-sized enterprises. The conference highlighted that many promising British companies struggle to find financing to scale and end up moving overseas. Daisy Cooper MP said "too many ideas, startups, and research started in Britain but ended up being taken overseas."
Stars Edge, a British space technology company developing low-orbit satellites, was cited as an example of a company needing investment at multiple stages from prototype to commercial growth. SMEs also face difficulties accessing public procurement contracts, which are seen as critical for proving products and generating revenue without relying solely on funding rounds.
Policy Reforms and Tax Changes
The Liberal Democrats propose significant tax and structural changes to boost business growth. Party leader Ed Davey announced income tax cuts at the party conference, funded by growth from closer EU cooperation. The proposed changes would raise the personal allowance to £15,000 and the higher rate threshold to £56,000, costing £17 billion in the first year. These changes are expected to be introduced as late as 2034.
| Policy Change | Proposed New Threshold | First-Year Cost |
|---|---|---|
| Personal Allowance | £15,000 | £17 billion |
| Higher Rate Threshold | £56,000 | Included in above cost |
The party claims a Growth and Defence Partnership with the EU would generate a £27 billion annual growth dividend, based on a Frontier Economics report. The Association for Competitive Technology influenced the conference business motion, which proposed raising the Seed Enterprise Investment Scheme limit, easing R&D tax relief claims, and recognizing software and intellectual property as valuable assets.
Additional measures include a temporary 12p per litre fuel duty cut until Christmas and cancellation of a planned January duty increase. Three amendments to the business motion were passed, focusing on green economy priorities, self-employed workers, and replacing business rates and rolling back inheritance tax changes. The party's broader strategy prioritizes a 'clear, simple and emotionally resonant national identity' and digital media investment, with over 1500 party members contributing to the motion.
The party's commitment is to make the UK 'the best place in the world to launch and scale a business' through improved access to finance and innovation support.
