Umunna: Small firms in every region would benefit from Labour’s business rate cut
New research by the House of Commons Library released today shows how much firms in each region would save under Labour’s plans to cut business rates in 2015 and freeze them in 2016.
Businesses are facing a tax hike of £700 million in April with business rates set to rise on average by £430. Under David Cameron, business rates have risen by an average of £1,500.
Ed Miliband announced Labour’s plans, which would help 1.5 million business properties across Britain, at Labour Party Conference in Brighton in September. Labour’s business rates cut will apply to premises with a rateable value under £50,000.
Business rate rises are linked to inflation and are part of the cost of living crisis hitting small business owners, as prices have also risen faster than wages in 40 out of 41 months since David Cameron became Prime Minister.
Action to tackle the rising cost of business rates was the number one demand by small firms in a survey by the Forum of Private Business of its members on the cost of doing business this month. Labour’s energy price freeze would also help small businesses struggling with rising costs under David Cameron, saving firms over £5,000 on average.
Shadow Business Secretary Chuka Umunna MP will outline Labour’s plans to help small businesses at the Association of Convenience Stores’ Heart of the Community Conference tomorrow.
Speaking at the ACS conference, Mr Umunna will say:
“Business rates have risen by an average of £1,500 since David Cameron became Prime Minister, with another increase of £430 coming next April. This is squeezing businesses on our high streets who are already struggling. So, instead of yet another corporation tax cut for large businesses, we will help you by cutting business rates in 2015 and freezing them in 2016. Benefitting 1.5 million business properties.
“In fact, there is nothing to stop George Osborne matching our commitment to cut then freeze business rates in 2015 and 2016 when he delivers his Autumn Statement in two weeks – he should do so and, if he does, we will support him.”