On Small Business Saturday, the Lib Dems have called for taxes to be slashed on small businesses. Woking Liberal Democrats have backed the proposals which would benefit 1,900 small businesses and entrepreneurs in Woking, from cafes and restaurants to high street shops.
The proposed tax cut would save small businesses an average of £5,000 a year by aiding them with staff costs. It would be achieved by quadrupling the Employment Allowance to £16,000 for a period of two years. This would allow a small business to employ five people on an average salary without paying any National Insurance contributions. 1.1 million businesses would be eligible for this tax cut, which would save them an estimated £5.5 billion next year.
It comes as a record number of small businesses say they are struggling with rising costs whilst new covid restrictions loom, according to a recent survey by the Federation of Small Businesses. Local restaurants have also reported a surge in Christmas bookings being cancelled, setting owners back thousands of pounds.
Meanwhile, the Conservative Government have announced small businesses will have to pay more National Insurance contributions in the new year, despite facing a tough winter. Research by the House of Commons Library has shown the Tory plans are set to hit an estimated 2,000 local businesses in Woking with a £4 million tax bombshell.
Lib Dem Spokesperson for Woking, Councillor Will Forster, said:
"Our shops and restaurants are the backbone of our community and must be helped through a tough winter. Businesses in Woking are struggling with mounting bills and worries about the impact of the new covid variant in coming weeks. We need to help them now with a big and bold offer."
"It is disgraceful that local businesses in our area are being forced to pay even more tax by this Conservative Government. We should help small businesses who have already suffered so much during the pandemic. That is why I am backing calls for our local businesses to receive a tax cut."
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