Small Business Saturday

Debate between Valerie Vaz and Stephen Mosley

Thursday 4th December 2014 Westminster Hall

[Stephen Mosley]

Like many people in this room, I spent a good deal of time in Norwich a few years ago when there was a by-election in the north of the city, and I was amazed at what a beautiful city it was. Coming from the north-west of England, I had not been to Norwich before, but I was impressed. It is on my wish list of places I would like to visit in the future.

Research shows that for every £1 that is spent in a local independent business, 60p goes straight back into the local economy. Areas that have a high proportion of independent small shops have been found to increase social interactions between shoppers. People in such areas are twice as likely to say hello to other people on their high street. People who live near small shops are 16% more likely to be positive about their local high street than are those who live in areas that lack independent stores.

[Valerie Vaz (Walsall South) (Lab)]

I congratulate the hon. Gentleman on securing the debate. Does he agree that there are concerns about the number of empty shops in our high streets? In Walsall town centre, at least 26% of shops are empty. Do we not need to do something more for our small businesses in the high street?

[Stephen Mosley]

I totally agree. Shopping habits are changing. People are moving online, and they are increasingly using out-of-town shopping centres. We as community leaders, local authorities and other organisations must get behind our high streets to ensure that when people go shopping in their local high street, they are not simply going to the shops but are having an experience in which they learn something and enjoy themselves. It is incumbent on all of us—Governments and local authorities, but also businesses and local communities—to make sure that high streets are vibrant, fun and exciting so that people decide to go to them. Only if people go to shopping centres and provide the necessary footfall will businesses move in and take up the empty shops.

--- Later in debate ---

[Stephen Mosley]

I totally agree. Small business Saturday started in the United States, and it is thought that last year US consumers spent $5.7 billion, which is about £3.6 billion, in small, independent retailers on small business Saturday. Following its success in the United States, small business Saturday first burst on to the scene in the UK in 2013. I am aware that the hon. Member for Streatham (Mr Umunna) was very much involved in bringing small business Saturday over to the UK.

[Valerie Vaz]

To make a link between the United States and here, we were lucky to have the Reverend Jesse Jackson holding up a sign for small business Saturday with my hon. Friend the Member for Streatham (Mr Umunna) in Walsall.

[Stephen Mosley]

I know how much the hon. Member for Streatham has been involved. He first learned about small business Saturday when he saw celebrities and high-profile people in the US tweeting about it. He, with Members from all parts of the House, put in a huge amount of work to bring small business Saturday to the UK last year. In the UK, small business Saturday has settled on the first Saturday in December, and it aims to have a long-term impact by encouraging shoppers to shop local and support the small businesses in their local area.

An independent community interest company, Small is Big, has been set up to run small business Saturday in the UK, and it endeavours to encourage organisations to support small business Saturday and get the word out about the day. Organisations such as the Federation of Small Businesses, the Association of Town & City Management, the Association of Convenience Stores and the Northern Ireland Independent Retail Trade Association have given their support and have encouraged their memberships to get involved. Last year’s small business Saturday gained widespread support and publicity across the UK in the newspapers, on TV and in social media.

Surveys show that 48% of UK customers were aware of last year’s small business Saturday and of the campaign’s aim to encourage people to shop small and shop local. The small business Saturday UK Facebook page gained more than 1.5 million views, and #SmallBizSatUK was in Twitter’s top three trending items all day. The campaign gained widespread support across the country, with 40% of local authorities also supporting the day. It is estimated that more than £460 million was spent in small businesses on that day alone, with 43% of shoppers deciding specifically to shop at a local store, spending £33 each on average.

Last year, small business Saturday gained the support of more than 200 Members of Parliament, including the Prime Minister and Members from both Front Benches. I was one of those 200 MPs, and I used small business Saturday to try to boost our local small shops and high streets in Chester. We distributed fliers and posters, and with the support of the local newspapers, we advertised both the day and special offers by many of our local shops. More than 400 local shops took part, and I started my Christmas shopping in the wonderful Chester suburb of Hoole, which has a fantastic reputation as one of the premier local high streets in Chester and is full of local, independent shops.

Running alongside small business Saturday, I was delighted to organise and run our first small business awards, which allowed customers to nominate and vote for their favourite independent shops and businesses. It was obvious that local people recognise the difference that these businesses make, whether it be the great customer service they receive or the high-quality products that the shops deliver. More than 150 businesses took part in the awards, and more than 1,000 local people voted for their favourite business. G&M Goold funeral directors in Vicars Cross and Monogram dry cleaners in Newton were the joint winners of my awards last year.

This year’s small business Saturday looks likely to beat all records. Like last year, we are seeing a huge push on the internet and on social media. The website www.smallbusinesssaturdayuk.com contains loads of useful information and promotional materials, such as digital packs of downloadable marketing material, including posters, logos and social media icons. There is also advice on running successful social media campaigns and a useful guide to avoiding the most common Twitter pitfalls—something some of our colleagues could do well to read. The small business Saturday team is using social media channels to feature 100 small businesses—one a day—in the 100 days leading up to small business Saturday, highlighting all that is great about small businesses. Foodies, an Edinburgh cafe, bakery and caterer launched with help from the Prince’s Trust, is today’s “small biz 100” company.

Alongside the online campaign, the small business Saturday bus is travelling the length and breadth of the country advertising small business Saturday and handing out promotional materials. There is also a big campaign in the traditional media, with many national and local newspapers already getting behind small business Saturday, highlighting the importance of Britain’s small businesses and backing the “shop small, shop local” campaign.

Chester will again be playing its part in ensuring that small business Saturday is a huge success. My office has produced small business packs containing posters and fliers, which we have distributed to small shops in the city centre and in suburban shopping areas. We have launched this year’s competition to find Chester’s favourite small business and distributed thousands of nomination slips, as well as allowed people to nominate their favourite small businesses on my “Championing Chester” website. Chester has a strong reputation as home to many successful small independent shops and I look forward to seeing the nominations and joining the celebration of our small business scene’s diversity and success.

Small business Saturday is an excellent way of highlighting the importance and success of small business across the UK, but the campaign, as we have heard, is about more than encouraging people to use small, independent local shops on one day a year. It is also about changing people’s mindsets so that they shop local and shop small every day of the year. Just as consumers need to be there to support small business 365 days a year, the Government also need to be there 365 days a year.

So far, as we have heard in interventions, the Government have an impressive record. I will briefly outline some of the welcome measures and support that have been provided to help small businesses thrive and grow. They include: the employment allowance, which has cut each company’s national insurance bill by £2,000, which directly benefits smaller companies disproportionately more than large multinationals; the reduction in corporation tax rates; the doubling of small business rates relief, and the welcome announcement from the Chancellor yesterday that that will continue after April next year. A £1,000 business rates discount has also been introduced for retail premises with a rateable value up to £50,000, which the autumn statement yesterday increased to £1,500 from April next year.