Councils must act to regain trust of local businesses

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Wednesday, 1 May 2013

As poll shows that 81% of SME managers don’t think that the local elections will affect their firms, it is time for councillors to seize the initiative

Despite the excitable climate among our political parties over tomorrow’s local elections, a snap poll conducted by the Forum of Private Business (FPB) suggests that many managers of small or medium-sized enterprises (SMEs) are growing disenchanted with the councils they have to deal with. Some 81% of firms think that the results will not make any difference, with just 19% believing that they will have a direct impact upon their businesses.

FPB policy head Alex Jackman said: “You only have to look around to see the poor repair of many roads, unaffordable town-centre parking and the tired persona of so many high streets to see why these opinions form.” The findings are also worrying given the enforcement of the Local Government Finance Act: a piece of legislation providing for an extra levy payable on top of standard business rates, with the proceeds distributed to local projects. Recipients of the funds are meant to be decided upon through dialogue between councils and local businesses – but enthusiasm for the Act is currently in a trough.

For the new scheme to have any effect, it is essential for councils to take note of the FPB’s findings and proactively engage with the firms in their areas. Initiatives for such engagement could take the form of questionnaires, meetings or interviews – whether face to face or online – to determine how businesses want to shape their surroundings. Councils also need to take steps to convince businesses that managing the Act will be worth their time. If they feel that nothing will happen, many will not participate, and a vicious circle will ensue.

On the strength of this poll, the onus would appear to be on local councils to break the cycle. Hopefully, the councillors who are delivered or returned to power on Thursday will take note – and take appropriate action.