[A-List] UK capital: SMEs warn over "social inclusion"

["Michael Keaney" <michael.keaney@xxxxxx>]

An interesting development, perhaps marking the point at which the
ever-widening gulf between SMEs and monopoly capital has finally registered
with the SMEs themselves. Traditionally social democrats have managed
coalitions of organised labour and monopoly capital, whilst SMEs (petty
bourgeoisie) have identified mostly with the Conservative Party. Given the
lack of a credible opposition, and, more importantly, the undeniable crisis
of infrastructure afflicting the UK after 26 years of "structural
adjustment", for this sector to voice such opinions is a positive sign, not
least of starkness of the contradictions of the "development" model
entrenched within the UK state apparatus and its major corporate sponsors.
One of these is that part of the smashing of the labour movement has been
the energetic propagation of an entrepreneurialist ideology that forms the
heart of many government policy pronouncements. While the smashing of the
labour movement benefits monopoly capital in particular, SMEs find
themselves with having to deal with more social expenses (deteriorating
transport links, declining education standards, security of private
property, etc.) as a result of the defeat of those forces that traditionally
worked to hold the post-1945 social structure of accumulation. Given that
those forces now no longer exist, the contradictions of social capital
liquidation are such that once-bitter enemies of redistribution are now
openly advocating it.

I met Mr Downie a few years back. A very energetic young man operating on
limited resources but highly effective, not least because of the ideological
favours bestowed upon his constituency. At the time (1996) he was fighting
against higher local government taxes being levied upon small businesses.
Times appear to have changed.

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Business attacks Executive on poverty

By Douglas Fraser Political Editor
The Sunday Herald, 24 November 2002

The poorest people in Scotland have been let down by the first four years of
devolution, while high-earning business people have benefitted most,
according to the business lobby.

The Federation of Small Businesses will next week unveil its report card on
the Scottish Executive and parliament's first term, and little of it is what
you might expect.

The FSB will praise ministers for the policies they are putting in place to
boost the economy. But they are expected to warn that unless there is more
effective action to tackle poverty and under-achievement, it will not only
be the poor who suffer but the business sector as well.

Business, which usually fights off environmental regulation as hitting its
profitability, is also telling politicians that they need to get more
serious about renewable energy, as there are commercial opportunities to be
had.

John Downie, the FSB Scottish spokesman, argues that its 16,000 members
operate within communities and recruit from them, so they have a clear
interest in tackling issues of social inclusion, education and basic skills
training .

The FSB argues that businesses have a clear interest in Scotland's poor
health record, with employees' sick notes costing UK business £11 billion
last year, long NHS waiting lists meaning that many workers are working
below capacity and inadequate childcare meaning mothers, often with scarce
workplace skills, are unable to go out to work.

Some 800,000 Scots are reckoned not to have core competency in numeracy and
literacy, bringing more problems for employers in recruitment and training.

According to the FSB: 'The Executive has started well by putting in place
training and learning initiatives. But it has sometimes fallen short in
finding imaginative solutions to the multiple problems surrounding stubborn
poverty and unemployment. These problems continue to hinder the prospects of
wealth creation.'

In the FSB report card, there will be criticism that the Executive has
failed to reach its own targets on reducing child poverty, on NHS waiting
times, and not maintaining its initial focus on social justice.

According to Downie: 'Business can't just focus on its narrow agenda of the
economy. Poverty and unemployment matter to us.'