Ministers have been told to “think again” and reconsider the Government’s “inadequate” response to proposals to improve UK plans for small business growth.

An influential select committee urged Government ministers to come back with a new response after raising concerns over intensifying pressure on small businesses in UK.

Liam Byrne, chairman of the Business and Trade Committee, said that “if Britain is serious about growing the economy, reviving our high streets and creating good jobs, we need a bolder, more ambitious plan to help small firms”.

In February, the committee warned that a series of major reforms is needed to arrest business closures and decline on the high street – including cutting costs, overhauling business rates and ending late payments.

It found that small businesses across the UK were operating under pressures similar to, and in some cases worse than those experienced during the Covid-19 pandemic.

The committee called for a “more coherent and ambitious plan” to support businesses.

It said on Tuesday that it still hopes for a more ambitious strategy from the Government after an “inadequate” response to its report.

The committee claimed the response “restates pre-existing schemes and commitments” and only fully accepts six out of 36 of the committee’s recommendations.

It urged the Government to bring forward a new response with stronger commitments within the next two months.

Mr Byrne added: “When we published our report in February, we warned that many firms were facing cost pressures comparable to the pandemic.

“Since then, those pressures have only intensified.

“We welcome the Government’s willingness to listen in some areas but too often it is repeating existing announcements, not confronting the problems businesses told us about first hand.”