Many small businesses have either had their overdrafts withdrawn or their interest rates hiked above 15%. Problems have been made worse by HM Revenue and Customs' aggressive behaviour which can drive small businesses over the edge with tax demands.
Conservatives are calling for:
- Small and medium-sized businesses to be allowed to defer their VAT bills, for up to six months. A typical firm could save £12,000 a year as a result, and improve its cash flow - which is so vital.
- Employers' National Insurance to be cut by one per cent for all businesses with fewer than five employees. A small business with four employees and an annual wage bill of £150,000 would save more than £100 a month. Gordon Brown, when Chancellor, increased the rate of National Insurance, hitting businesses and jobs.
- Small business corporation tax rate to be cut from 22p to 20p.
- Action to raise awareness of small business rate relief to encourage more firms to claim it, and so save up to £1,100 a year in business rates.
Conservatives themselves are taking the initative to help small firms, by launching an online tool for businesses to see if they are eligible for small business rate relief. The website is available at: www.conservatives.com/smallshops/
Harriett Baldwin said:
"Small shops and businesses in Worcestershire are facing tough times because of the credit crunch. These firms are the lifeblood of our community and local economy. A responsible government would do more to help them. But Gordon Brown is not standing up for their interests.
"Conservatives are calling for a council tax freeze for local residents, and a package of measures to help local firms, including cutting their business taxes and helping their cashflow. Action is needed to save jobs and businesses during these very difficult economic times."
Photo: Harriett Baldwin and Alan Duncan at the Enterprise Forum