Ed Miliband says Labour, not the Conservatives, is the party behind UK small businesses, in a message to get entrepreneurs on-side ahead of next year's general election.

Speaking at the Federation of Small Businesses (FSB) conference today, the leader of the opposition said “a race to the top” was needed for better wages, skills and paying down the deficit.

He added that small firms were “Britain’s best hope” for the recovery and would be the bedrock for new products and new jobs.

“To earn and grow our way to a better standard of living, Britain doesn’t just need a small number of large businesses to succeed, it needs a large number of small businesses to prosper,” he said.

But he added that big changes would be needed to create this future. He quoted CBI chief John Cridland in describing a “forgotten army” of start-ups and small businesses.

He emphasised the cost of doing business and hinted at changes to taxes and business rates for retailers, should Labour be elected at the next election.

“We know so many of the costs of running a small business have got larger and larger in recent years. Stifling enterprise. The next Labour government is determined to tackle this problem,” he said.

“Competitive tax rates are an important part of ensuring long-term business success. And that won’t change under a Labour government.

“But in times as tough as this, in my view precious resources should be used to help the small businesses who need it most. Especially given the way that business rates have gone up and up in the last few years.”