The Richmond Park MP has called for a tax cut for small businesses in the borough, which would save them an average of £5,000.

Sarah Olney MP said the move would help businesses, including local restaurants suffering from Christmas cancellations following new Covid restrictions

Ahead of Small Business Saturday, the Liberal Democrats have called for taxes to be slashed on small businesses. Local Liberal Democrats have backed the proposals which would benefit 2,400 small businesses and entrepreneurs in Richmond Park, 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.

The Government's decision to raise National Insurance will hit struggling firms in the pocket. Research by the House of Commons Library show the plans are set to hit an estimated 2,500 local businesses in Richmond Park with a £4.7 million tax bombshell.

Sarah Olney said: "Our local shops and restaurants are the backbone of our community and must be helped through a tough winter. Businesses in Richmond Park are struggling with mounting bills and worries about the impact of the new Covid variant in the coming weeks. We need to help them now with a big and bold offer.

advertisement

"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."

Leader of the Liberal Democrats, Ed Davey MP, said: "Cafes, shops and start-ups are all looking at this winter with dread, yet all Boris Johnson can muster up is a massive new tax bill. The Conservatives must be living on another planet if they think the answer to business owners' problems is to put up their taxes.

"This country was promised tax cuts by the Conservatives, but yet again their promises have been proven not to be worth the paper they are written on.

"People and businesses need help now. I want to give our dedicated local business owners and entrepreneurs a helping hand, and to truly unleash Britain's potential."