NOW the dust has settled after the political drama of the General Election and the opening days of the Labour government, the focus is turning once again to the day-to-day business of government.

The arrival of a new government after 14 years of rule by one party is always going to feel historic – it’s a significant “changing of the guard” moment for the country. Add an election landslide into the mix and that means a host of new faces in the House of Commons, alongside a few familiar ones.

One thing that such a decisive General Election result brings is stability. There is a degree of certainty for the country and for business which offers the UK Government the opportunity to set out a clear road ahead.

Recovery is fragile – it needs nurtured until it's strong

In opposition, and throughout the election campaign, Labour has been clear on the critical importance of creating the right environment for a sustained economic recovery. Since July 4, Keir Starmer and his frontbench team, including new Scottish Secretary Ian Murray, have continued to focus consistently on that “fundamental mission” and their determination to forge “a new partnership” with business.

It has been reassuring to hear the clear recognition that economic growth is the critical first step, without which no government can deliver its wider aims, from improving public services to tackling child poverty.

The scale of the economic challenge facing the incoming government was starkly clear before the election, and the emphatic nature of Labour’s election victory does not change that one bit. That huge Commons majority gives Keir Starmer a clear mandate for taking decisive action, but, as he is clearly aware, it does not put a single pound on the UK balance sheet.

Support for small businesses is always welcome – but more is needed

So far, the Prime Minister and his Cabinet have done a good job of spelling out the “what” of their economic ambitions, but the “how”, the policy detail, is at this stage less clear.

Last week’s King’s Speech laid out plans for 39 pieces of proposed legislation including 24 which affect Scotland, at least partially. They include eye-catching initiatives such as the planned launch of GB Energy, a publicly-owned clean power company, capitalised with £8.3 billion in new money within the next five years, and headquartered at an as yet undecided location in Scotland.

There is a lot to like in that plan which comes with the promise of lower energy prices for us all. It was also good to hear again the commitment to forging a stronger working relationship with the Scottish Government and other devolved administrations.

There was little, however, about the steps which the UK Government will take to support the overwhelming majority of businesses in Scotland, the 330,000 small and micro enterprises that make up 98% of firms north of the Border. These businesses, which employ 900,000 people and turn over £82bn annually, will form the bedrock of the country’s economic recovery.

Net zero challenges for businesses with commercial premises

The devil will be in the detail, as it always is, when it comes to the government’s economic plans. It would be good to see more of that detail relating to the country’s small businesses.

What concrete steps will be taken, and when, to fulfil the pre-election commitment to tackle the blight of late payment from large corporations to their small business suppliers? That hampers the flow of cash into local firms and their communities, and stifles investment.

And what will be done to support small business employment? Will, for example, the Employment Allowance – effectively the threshold for employers’ National Insurance contributions paid by employers – increase in line with any rise in the National Living Wage? Nine out of 10 owners tell us they are worried about such stealth taxes.

These are the kind of nuts-and-bolts issues which can make all the difference to a small business. Often, when many firms continue to face vastly increased costs, that is the difference between taking on an extra member of staff or not.

Politicians must not lose sight of SMEs amid election debate

Scotland’s small businesses are well placed to drive economic recovery – and are often the best placed to help those furthest from employment back into the workplace – but they can only do that if the conditions are right.

The UK Government has promised to consult widely and openly on its plans, and we look forward to continuing to make the strong case for a comprehensive programme which will support Scotland’s small businesses to rise to the challenge facing us all.

Colin Borland is director of devolved nations at the Federation of Small Businesses (FSB)