Back Local Business
23rd March 2009
Last week I asked the Business Minister what he would tell small businesses whom I have been meeting throughout my constituency to help them through the recession. His reply was symptomatic of much Government action over the last few months: lots of frenetic announcements but precious little help actually reaching the small businesses that so desperately need it.
The Government’s flagship working capital scheme was supposed to provide the first £1 billion tranche of guarantees by 1st March. However the Minister admitted that the scheme was not yet in operation. Another example is the capital for enterprise fund, which should provide £75 million of long-term capital to businesses that have exhausted traditional forms of finance. This fund was supposed to be ready to start investing by the end of January 2009, but no investments have yet been made. The Government should adopt our proposal for a £50billion National Loan Guarantee Scheme to get credit flowing again for businesses, having a significant impact on the high street.
A big issue for our local shops is business rates. The Government has too much control over the rates which are due for a huge hike of over 5%. The forthcoming budget is the opportunity for the Government to help businesses on rates. I have supported a Bill to provide automatic rate relief for small businesses as well as a cut in the small companies’ rate of corporation tax from 22p to 20p; a cut in national insurance contributions and a VAT 'holiday' for up to six months.
I am working with the Council to support Nick de Bois's campaign to ‘Back Local Business’. Our campaign is not about words but practical action to help sustain the local economy. It’s not about spending more but is about encouraging local people to choose to spend in local shops. For example I am working with Green Lanes Business Association to ensure the forthcoming Easter Egg Hunt and Street Festival are successes. Over the coming weeks we will be supporting initiatives across Enfield to back local business. Please visit www.davidburrowes.com or www.nickdebois.com for more details.
