It's time to back our small businesses

It’s time the Government backed small businesses, like those in Taunton and Wellington, Gideon Amos MP told the House of Commons on Tuesday.

He highlighted a catalogue of local enterprises in a speech during the second reading of the proposed Finance Bill.

“In contrast to the Budget and its effects, so much about business in Taunton and Wellington is on the up thanks to the enterprise, community spirit and business nous of people there,” he said.

“In Wellington, the new community hub in the Kings Arms - where I held my surgery last Friday - is a huge success thanks to volunteers such as Cliff and many others.

“New units are going up in Westpark, and new retail and food outlets are popping up all over the town.

“In Taunton, footfall has jumped by 2.1% - four times the national average increase of 0.5%. Lots of independent shops, such as Dosha Wellness and The Little Cheese Shop, have recently opened.

“We have great pubs and restaurants, too. In just the past few months, we have seen The Winchester open in Castle Green, Tap One in the independent quarter and The Chapel Tap in the town centre.

“I thank all those business people who are committing to Taunton and Wellington and opening businesses in our area.”

But Gideon said those hospitality and drinks businesses were not sharing the joy this Christmas from the Budget

“Hospitality and drinks businesses are worried about increasing duty and business rates.

“Cider is worth £150 million to the South West economy, but cider makers are struggling. Cider plays a huge role in supporting our agriculture and maintaining the countryside, so it delivers a public good.

“However, the fact that it represents only 6% of the sector means that it is much more vulnerable to duty changes and price changes.

“What cider needed from this Budget was a five per cent duty cut to put back the original differential with beer duty.”

Gideon added: “Hospitality believed that its rates would go down - it believed the famous ‘permanently lower business rates’ promise - but they have actually gone up.

“Philippe, a partner of The Little Wine Shop, which is a fantastic brasserie in my constituency, tells me that the Budget means ‘less hours for my staff, therefore less revenue for the Treasury’ as he is closing one day per week.

“He says: ‘We will stop employing young people (16 years old)’ and ‘I have three members of staff leaving by mid-March, I will replace only one if I am still open by then. I am fuming’.”

The MP told the House: “For another business owner, Mr Miles Tea Room, although his valuation has actually gone down by 10%, his business rates bill has gone up by 12%.

“What does the Minister have to say to those at Mr Miles as they work to keep the lights on in the High Street?

“As the owner of the other great Winchester pub in my constituency – the Winchester Arms in Trull – has pointed out, pubs have to pay business rates according to their turnover.

“What other business is subjected to the disincentive that when they increase turnover, their property rates increase? The answer is none.

“What Taunton and Wellington residents and high streets needed from this Budget was a boost.”

Mr Amos added that, as a result of quantitative easing funds, the ‘big four’ banks alone will make £50 billion of profit this year.

“The boost that people and the High Street need is both the cut to electricity bills and the 5% VAT cut that the Lib Dems propose, funded by a windfall tax on those bank profits.

“It is time the Government backed small businesses like those in Taunton and Wellington - part of the biggest and most important sector of the British economy - after the economic chaos under the Conservatives.

“It would be a boost to going out in the evening, a boost to our pubs and restaurants, and a positive boost to the economy.

“That is the kind of Budget we needed, and that is the kind of Budget the Liberal Democrats would have delivered.”