Small Businesses Split Over Labour or Tory Policy Choices

Small Biz Buzz: What 800 UK Entrepreneurs Have to Say About Politics

Early June saw 1st Formations drop a survey into the inboxes of tens of thousands of small businesses—because who loves a good questionnaire, right? Out of the mountain of responses, 800 filled the form, and they’re ready to spill the tea on the industries they belong to, political leanings, and their war‑zone experience with Brexit.

Industry Snapshot

Tech
E‑commerce
Finance
Education
Construction
Hospitality
Property
Retail

Are the Tories the Business Man?

When asked whether the Conservatives are better for business than Labour, 51 % said “yes” and 49 % said “no”.

CEO and founder Graeme Donnelly mused, “The Conservatives have always been seen as the party of business, so getting a 51‑percent split is pretty surprising. Labour’s 49 % shows how far the party has come since the Jeremy Corbyn era.”

Small Biz: The Unsung Heroes

Did you know there are 5.5 million SMEs in the UK—companies with 0‑49 employees? The Federation of Small Businesses reports that SMEs drive nearly 60 % of jobs and cover over a third of the private sector’s turnover—about £1.6 trillion and 13.1 million people.

Graeme added, “The clear message that SMEs feel the government favors big business is a wake‑up call for both parties. The lack of willingness to cut business rates or VAT, combined with Brexit’s talent drain, is stifling the economic growth we desperately need.”

What the Survey Says

Big business over SMEs? 66 % of respondents said “yes”, 10 % said “no”, the rest were unsure.
Brexit impact? 42 % said “negative”, 9 % said “positive”, the rest said “neither.”
Labour/skills shortage? 62 % said “no”, 38 % said “yes”. Among the “yes” group, 58 % blamed a shortage of EU-skilled workers, 42 % didn’t.

Economists Get Involved

Dr. Sultan Salem, a University of Birmingham economist, stressed the importance of SMEs for UK growth, noting they’re often more nimble with new tech. He believes Labour’s targeted support—financing, grants, local development programs—offers a stronger platform for sustainable growth.

Salem also pointed out that although Conservatives champion tax cuts and deregulation that help larger enterprises, the benefits don’t trickle down evenly to all small businesses. “Re‑election of the Conservatives is likely to mean more of the same, with continued focus on big‑picture tax cuts and deregulation, but that may not translate to the very SMEs that need fresh support.”

His take? A part‑to‑part, data‑driven analysis that’s careful to stay neutral—no policy endorsement, just the numbers.