Conservatives pledge further help for small businesses

Labour have been lazily attacking the Conservatives as the "do nothing" party in regard to dealing with the country's financial crisis.

Today saw another promise of action from the Conservative frontbench in the form of a practical measure which could be implemented specifically to help small businesses.

Shadow Communities and Local Government secretary, Caroline Spelman, has pledged to ensure that small business rate relief (which was introduced in 2005 to allow small businesses to claim a discount of up to 50% on business rates) be applied automatcially to firms in England - as has been the case in Wales since 2007.

Her pledge was made to support Tory backbencher Peter Luff's Private Member's Bill which would legislate for the proposal, thereby saving huge amounts of time and bureaucracy involved in filling in the forms to claim the relief.

In some regions of the country, more than two thirds of eligible businesses have not been claiming what they were due.

Mrs Spelman has said:

“Small shops and businesses are facing tough times in Labour’s recession. These firms, from corner shops to local pubs, are the lifeblood of local communities. A responsible government would do more to help them. Yet Gordon Brown is making it as difficult for small firms to claim the tax relief to which they are entitled. He is compounding their misery by finding new ways to drive up business rates by stealth. Conservatives would ensure that small firms automatically receive rate relief, cutting their paperwork and their tax bills and giving many of them a fighting chance to stay afloat.”

Who could disagree with that?

Jonathan Isaby

Comments

[Sally Roberts]

"Conservatives would ensure that small firms automatically receive rate relief, cutting their paperwork and their tax bills and giving many of them a fighting chance to stay afloat.”

Who could disagree with that?"

I certainly wouldn't - in this climate small businesses need all the help they can get!

[Malcolm Dunn]

Oh I'm sure somebody will Jonathan. On this board they always do.

[David_at_Home]

"Who could disagree with that?"

I do. If business rates are too high (and I suspect they are) then they should be just cut without any bureaucracy to worry about.

But the real killer for businesses, both small and large, it that notorious tax on jobs known as employers' National insurance; this too should be cut to zero!

Jobs are more important than benefits so there could be balancing cuts in benefits and tax credits should go.

[snegchui]

How dare Caroline Spelman seek to further reduce the flow to Govt coffers when the Govt is doing so much to help the country out of the mess America has got us into to? Just how dare she? Those small companies will just waste it on trivial extras.

[David_at_Home]

"Oh I'm sure somebody will...."

Always happy to oblige, Malcolm!

[Paul Oakley]

How dare Caroline Spelman seek to further reduce the flow to Govt coffers

Because it's not the bloody government's money. It belongs to the people who've earned it.

[David Belchamber]

The "Do nothing" tag is irritating but initiatives from our side just trickle out without much publicity and so make less impact than they should.

Is there not a case for summarising such announcements under the relevant headings, so that, even if the document does not lead the BBC news, at least all MPs will be able to quote it to rebut Labour critiscisms?

[michael mcgough]

There will be far fewer firms left to help by the time the Tories gain power.

[Jack Stone]

Never understood how anyone can justify the NI employers contributions to me its always seemed like a disincentive to employ people. Abolishing it should be a priority if you want to cut unemployment.

[John Moss]

There is no "do-nothing-party" web site - or if there is it doesn't google.

Perhaps Tim or Jonathan or somebody suitably web savvy can collect all the ideas we have set out and pull them together on a new site so every time Labour say we are the do-nothing party we can direct people to it?

[Neil Reddin]

While I've never considered "the do-nothing party" to be an insult, this is a good proposal.

[Perdix]

John Moss 19.38 - go to:
http://www.conservatives.com/Policy/Where_we_stand/Economy.aspx

This is a summary of Conservative policy on the economy.

[Super Blue]

Tim,

"Never understood how anyone can justify the NI employers contributions to me its always seemed like a disincentive to employ people. Abolishing it should be a priority if you want to cut unemployment.

Posted by: Jack Stone | March 06, 2009 at 18:53 "

Please tell me you attached this post to the wrong name - it is positive, makes sense and has no misspellings.

[Steve Tierney]

>>Those small companies will just waste it on trivial extras.<<

Yeah. Trivial extras like "not going broke." Nice one, Troll.

[Helen]

I suspect Snegchui's comment was intended to be satire but people on this forum always fall for that. Too busy defending Tory spokespersons.

The best way of helping small, medium-sized and large businesses (and we need them all) is to cut various taxes, not least NI. All else is piffle. Any proposal that involves relief, rebate re-whatever simply adds to the bureaucracy. Just do it - start talking about tax cuts.

[snegchui]

Oh, look at Malcolm Dunn's statement above my first post.
Dear God.
I have spent the evening asking small businesses locally what they knew about this. I had a small result some weeks back about the rebates on no smoking in pubs.
I like this site and I do appreciate the wide knowledge that comes through,. I have been guilty myself myself of missing the odd irony (well it was too subtle wannit), but I thougt I laid with a heavy trowel here.

[rugfish]

Without any reference to parliament and in effect ripping up the European Directive which dictates no state interference, the British Government has today nationalised Lloyds TSB with a 63% controlling share in the mighty bank which has mighty problems. The significance of this decision has many political overtones and questions, which need answers from government. What is the new relationship between government and the bank. Does it intend to exercise control of its board. Who will head the bank to ensure the taxpayers interests are put first. How does this affect our relationship with the European Union. Under what authority did the government give itself the power to nationalise the banking industry. Who will pay for this and how. Will the government now say the Bank of England is independent. Will the government now use its muscle as state sponsor of this bank to make it lend to businesses and to individuals or will it continue to say we're in a global free market and that the market will decide. Will the British Govt now take responsibility for failure of the banking industry and henceforth for its further decision making and will it still say "We saved the banks"?

[pp]

"tax relief"

It is a good policy, but I would like to see it in slightly different language.

It is 'reliefs' and 'credits' that make up much of the time consuming, wasteful paper work that gets dumped on the small business and citizen.

Instead of seeing it as a relief, it should just be seen as a lower rate, and it should be for the collectors to inform businesses of, and to collect from business the correct rate.

It is the mentality and language of 'allowances', 'reliefs', 'credits' (so beloved of Brown) that really needs changing.