Hurting small businesses

Why is it that small businesses, which are the lifeblood of the economy - in a way which big global corporates never will be - seem to be hit hardest from red tape and higher taxes? I was reminded of this most recently, by a small business owner, who came to see me in my MPs' surgery.  He told me how his business was having to pay ever increasing taxes and charges, especially at a time of economic hardship.  His argument was simple:  in these difficult times, small businesses should not have obstacles thrown in  their way to make life even harder.

I could not agree more - and asked the following question to the Leader of the House of Commons, Sir George Young, during Business Questions last week:

Robert Halfon (Harlow) (Con): Will the Leader of the House find time for an urgent debate on costs to small businesses? Two of my Harlow constituents- Mr Raymond Patten and his daughter-have a small business outside Harlow. Their business costs have increased severely this year, with business rates up by 50% and licensing costs trebling. Does my right hon. Friend agree that while this Government are doing many excellent things to help businesses, we must not give with one hand and take away with the other?

Sir George Young: I agree with my hon. Friend, and I see that there is a debate scheduled for Tuesday on support for businesses, which he may like to attend. He will have read the Government's Green Paper, "Financing a private sector recovery", which lists a range of measures the Government are taking to support small and medium-sized enterprises, such as a business growth fund of £1.5 billion, £200 million for the enterprise capital funds and support for the enterprise finance guarantee, as well as supporting SMEs through growth hubs. I will, of course, draw my hon. Friend's remarks to the attention of the relevant Ministers.

Whatever is being proposed, it can't come soon enough:  if we are to have an economic recovery, we need to ensure that our small business entrepreneurs are incentivised and not discouraged.

by Robert Halfon - www.roberthalfon.blogspot.com