Councillors hold the keys to saving Britain’s small businesses

As newly elected councillors take office, small business owners are looking to town halls for more than words. From parking charges to licensing rules, local decisions can shape whether a business thrives or fails. With micro and small firms employing half the UK’s private sector workforce and contributing nearly £2 trillion to the economy, the message is clear: get the local details right and high streets recover; get them wrong and closures follow.

Councillors have real power to make it easier to do business

local councils Britain

As the dust settles from the local elections and new councillors wake up to the enormity of the task they’ve been elected to take on, the local business communities are looking for their help and support. It is hugely important for the UK economy, local authority services and for local areas and communities that micro and small businesses succeed and flourish.

Small and micro businesses employ half of the UK’s private sector workforce and contribute almost £2tn to the economy. This is a sector too big to fail but it has been under the cosh and struggling since the financial disaster of 2008 and for the last 5 years in particular. Now is the chance for local councillors to use their considerable power to drive a small and micro business regeneration revolution.

Yes, central Government sets many of the rules and the wider geopolitical environment is affecting many of the factors making business difficult, but often it’s the smaller things that can swing the pendulum just enough to create a positive local business ecosystem.

Councils control Parking, Transport & High Street Access. They decide:

• Parking charges

• Free parking periods

• Loading bay rules

• Parking fines and enforcement intensity

• Bus route subsidies and cuts

• Road closures, diversions, Local Traffic Neighbourhoods

• Pedestrianisation schemes

• Market trader access rules

All of the above are factors that have a huge impact, either positive or negative, on footfall, deliveries, staff travel, customer convenience. Get those decisions wrong and the customers disappear and spend any money they have elsewhere. It’s not just through choice, but sometimes to avoid local difficulties, that people shop online. Councillors have the power to attract people back to their high streets.

Business Rates Reliefs (NOT the tax itself) but the reliefs are down to councillors’ decisions

Councils control:

• Discretionary business rates relief

• Hardship relief

• Local schemes for small businesses

• Rate enforcement behaviour

Those reliefs can make all the difference between a small business sinking or swimming during tough periods.

Licensing - Councils set local policy for:

• Alcohol licensing hours

• Late‑night levies

• Taxi/private hire rules

• Street trading licences

• Pavement licences

• Market stall rules

• Events and temporary licences

Those licences have a huge impact on costs, opening hours, ability to trade outdoors, income from festivals, football matches, street events.

Planning & Development decision are down to Councils:

• Planning permission

• Change of use (e.g., shop → café)

• Outdoor seating permissions

• Signage rules

• Building control inspections

• Local development plans

All of those issues affect whether a business can expand, adapt or even survive.

Environmental Health Enforcement Style - the law is national but councils control:

• Frequency of inspections

• Tone: supportive vs punitive

• Flexibility for micro‑businesses

• How quickly issues are resolved

The right style of enforcement can take stress and cost out of the equation and have a big impact on the ability of a business to trade without disruption.

Waste & Recycling Charges are down to councils too. They set:

• Commercial waste fees

• Recycling rules

• Collection schedules

• Penalties

Monthly operating costs can be hugely affected by these charges and are often the proverbial straw.

Councils decide Local Grants & Business Support

• Who gets local business grants

• Whether to fund enterprise agencies

• Whether to run business support programmes

• Whether to provide affordable workspace

Access to support is vital for start-up, growth and survival.

Many rules come from central Government but are enforced by local authorities. These are the rules businesses blame on councils. Councils however don’t control the law, only how the law is enforced.

Environmental Health Law

• Food hygiene

• Health & safety

• Noise complaints

• Trading standards

• Product safety

Law: National Enforcement: Local authority Discretion: High (tone, frequency, approach)

Business Rates (the tax itself)

• Set by central government

• Councils only collect it

• Councils can give discretionary relief

Building Regulations

• National rules

• Local enforcement

Licensing Law (the framework)

• Licensing Act 2003 is national

• Councils set local policy within it

Trading Standards

• National law

• Local enforcement

Waste Regulations

• National rules

• Local implementation

On top of the areas over which local councils have control, and those that they enforce, there are areas where they have significant influence even though they don’t have control:

High Street Regeneration is a really important issue for businesses and residents and councils influence:

• Town centre investment

• Public environment improvements

• Anti‑social behaviour enforcement

• Empty shop strategies

• Business Improvement Districts (BIDs)

Skills & Employment Support are huge issues for small businesses and councils influence:

• Local training programmes

• Apprenticeship partnerships

• Employment support schemes

Economic Development Strategy is shaped by councils

• Local business priorities

• Sector support

• Investment attraction

Local Authorities have huge power on the issues that can mean life or death, struggling or thriving for small and micro businesses:

• Footfall

• Costs

• Ability to trade

• Opening hours

• Planning flexibility

• Parking and transport

• Licensing burdens

• Local support infrastructure

They can make business easier with free parking, flexible licensing, supportive inspections or harder with parking hikes, strict enforcement, planning delays.

For micro‑businesses, these decisions often matter more than national policy. Micro and small businesses need councillors who understand how they operate and what they need to thrive. That’s what will build the foundations for the regeneration of high streets, local areas and communities and lead to increased social value and impact across the UK. Our call to action is ‘think micro business first’ and rebuild from the ground up.