Beyond the Political Promises: What Britain's Growth Debate Means for Business.

Britain Has the Entrepreneurs. But Can Politics Deliver the Growth?

What SME Business Day at the Conservative Party Conference 2026 revealed about business confidence, investment and the policies that could shape Britain's future.

Britain doesn't lack entrepreneurial ambition. It has innovative start-ups, experienced business leaders and companies capable of competing internationally. Yet many still struggle to take the next step: scaling successfully and staying in the UK.

At the Conservative Party Conference's SME Business Day in Birmingham, Larkspur joined entrepreneurs, investors and policymakers to explore what is holding British businesses back and what a future Conservative government would do differently.

The discussions revealed some familiar challenges, but also a sharper political dividing line between Labour's approach and the Conservatives' emerging economic agenda.

Lower costs, less regulation but will it deliver growth?
Opening the Getting Britain Growing panel, Shadow Chancellor Andrew Griffith MP outlined five priorities: cheaper energy, lower business taxes, less bureaucracy, more flexible employment markets and greater investment in British businesses.

The Conservatives are seeking to distinguish themselves from Labour's approach, which places greater emphasis on employment protections, public investment and government-led economic initiatives.

Their proposals include halving employer National Insurance for workers aged 21–24, reducing business rates for eligible high-street businesses, reforming IR35 and reviewing the burden of tax administration. They have also pledged to repeal Labour's employment rights legislation and reduce energy costs by removing certain environmental levies.

These are meaningful differences in policy direction, although the practical impact would depend on implementation and the wider economic consequences.

For SMEs, the question is not simply whether taxes fall. It is whether the overall cost and uncertainty of doing business improve.

A manufacturer considering expansion, for example, must account for energy, recruitment, regulation and financing simultaneously. A reduction in one cost may help, but it does not automatically resolve the others.

Business leaders therefore need to look beyond headline announcements and understand how different policy scenarios could affect their own investment and hiring decisions.

Britain creates successful businesses. Why do so many look overseas to scale?
Louise Hill of GoHenry and Chris Hulatt of Octopus Group highlighted another challenge: Britain's ability to finance its most promising growing companies.

Founders described turning to US investors for transformative funding, raising questions about whether the UK is capturing enough long-term value from the businesses it creates.

The Conservatives want more British capital invested in British companies, with discussion focusing on institutional investors, pension funds and the role of the British Business Bank.

However, this is not exclusively a Conservative ambition. Labour has also pursued ways to channel institutional investment into UK growth businesses. The political difference is therefore less about recognising the problem and more about how capital should be mobilised and what wider conditions encourage investment.

For founders, the practical lesson is to think about scale-up funding long before it becomes urgent. Investor relationships, governance, international expansion and potential exit routes should form part of growth planning from an early stage.

The real test of any government's growth strategy is not how many businesses are created, but how many can become lasting success stories.

Defence, AI and the opportunity to turn innovation into capability
The Defence & Technological Resilience panel, featuring James Cartlidge MP, Stuart Foster of Barclays and Jamie Bennett of SYOS Aerospace, brought a different perspective to the growth debate.

With geopolitical uncertainty increasing, defence technology represents both a national security priority and a potential growth opportunity for British SMEs.

The Conservatives emphasised faster procurement, stronger partnerships between smaller innovators and major defence contractors, and clearer government purchasing intentions.

Proposals for a Sovereign Defence Fund also point towards a greater focus on domestic industrial capability.

Yet the need for stronger defence investment and technological resilience is not unique to the Conservatives. The more important question is whether either political approach can translate strategic ambitions into faster purchasing decisions and real opportunities for innovative British companies.

One observation from the discussion was particularly relevant beyond defence: a product is not the same as an operational capability.

The same principle applies to AI.

Businesses may be experimenting with new tools, but competitive advantage comes from integrating technology into operations, solving genuine problems and delivering measurable results.

For SMEs seeking opportunities in defence, technology or public-sector supply chains, understanding future customer requirements, procurement routes and potential partnerships may be just as important as the innovation itself.

Scaling up requires more than a change of government
The Scaling Up: From Start-Up to National Champion discussion, featuring Sir Richard Harpin, Luke Johnson and Castore co-founder Tom Beahon, reinforced the importance of looking beyond the start-up stage.

As businesses expand, their challenges change. Leadership structures, access to talent, operational systems and funding become increasingly important.

Government can influence the environment in which businesses operate, but it cannot build those capabilities on their behalf.

This is where the wider conference discussions offered a useful reminder: taxation, technology, skills, investment and regulation are interconnected.

Environmental policy illustrated a similar challenge. The Conservatives argued for reducing administrative burdens, while discussions involving Aphra Brandreth MP questioned whether existing environmental schemes always deliver measurable results.

But reducing bureaucracy and achieving environmental improvements are not necessarily opposing objectives. Businesses still need to manage resource risks, meet customer expectations and build resilience.

The opportunity is to make environmental performance part of better business design, rather than treating it solely as a compliance requirement.

From political promises to practical progress
SME Business Day made the Conservatives' intended direction clearer: lower business costs, reduced regulation, greater private-sector investment and faster decision-making.

That represents a different emphasis from Labour's approach, although both parties recognise the importance of investment, innovation and economic growth.

The unanswered question is whether the proposed changes can deliver the stability and confidence businesses need and how they would be funded and implemented.

For us at Larkspur, the most valuable insight from the day was the importance of connecting policy, strategy and practical delivery.

Businesses cannot control the political environment, but they can prepare for change, strengthen their operations, identify new opportunities and make more informed investment decisions.

The challenge for policymakers is to create an environment that rewards those decisions. The challenge for business leaders is to be ready to act.

Because Britain's future growth will depend not just on what governments promise, but on what businesses are able to deliver.