Labour will put small businesses first in line for tax cuts and ensure the tax burden on small firms is lower than under the Tories, Ed Balls announced today.
The Shadow Chancellor said that Labour’s first Budget will cut business rates for 1.5 million small business properties nationwide and then freeze them the following year. This will benefit 230,000 business properties in the South East region.
Commenting on the Shadow Chancellor’s announcement, Chris Oxlade, small businessman and Labour Candidate for Crawley, said:
"I was a small business owner, I have seen first-hand the importance of giving small firms the support they need to prosper, scale, invest and innovate. Small businesses make a vital contribution to the local economy in Crawley, add to the character of our town and are a source of local jobs.
“Ed Balls’ decision to back Britain’s small firms and our struggling high streets by cutting business rates will encourage budding-entrepreneurs to establish a business in Crawley and provide support to firms already up and running in the town. This announcement would benefit 2,000 business properties in Crawley alone.
“I understand the challenges many small businesses have suffered over the past five years. Under the Tories higher business rates have cost firms an average of £1500 a year and are an ever bigger part of their tax burden.
“Small firms are the backbone of our local economy and with Labour’s support we can create more high skilled, high paid jobs which are vital to raising living standards in Crawley.”
This is part of Labour’s Better Plan for Small Businesses, which includes action to tackle late payment, reducing unnecessary regulation and establishing a British Investment Bank to boost lending to small firms.
Over the course of this Parliament, the Conservative-led Government is set to have spent more than £7 billion cutting the main rate of corporation tax to the benefit of large companies. But new figures published by Labour today show that since 2010 revenue from business rates has gone up by almost £3 billion and that higher business rates have cost firms an average of £1,500 a year.
Labour will lower the tax burden on small businesses with a cut in business rates – worth an average of £400 – rather than going ahead with another cut in corporation tax for large firms.
This will benefit 17 small business proprieties for every one business helped by a further cut in corporation tax. And we will look to go even further as we prioritise small businesses for future tax cuts.