We must protect our local businesses

The build-up to this year’s Budget has certainly been gloomy, with businesses and residents telling me everything feels quite bleak. I am writing this the day before Rachel Reeves delivers her Budget in the House of Commons and, even with all the leaks in the build-up, MPs find out what is announced at the same time the public does.

I am not anticipating a Budget that will truly deliver the answers to issues affecting residents and businesses in Chichester. The economy is at a standstill, our businesses are struggling to grow, and a pay-packet or pension is stretching less than it used to. It is harder for everyone.

Jess on Chichester High Street

Thinking back to the General Election last year, there was certainly no overwhelming love for Labour on the doorsteps. But most people agreed that they were disappointed with the economic mismanagement of the Conservatives and were hoping for a clean break from the mistakes of the past. Instead, they have received more of the same.

Last year, the Chancellor used the economic outlook to justify National Insurance tax hikes on employer contributions. These hikes have hammered small businesses and charities. Businesses in Chichester feel the Government is not listening to their concerns. They want to expand, take on more staff, and boost our local economy, but feel shackled by tax rises which are putting many businesses at risk of closure.

There is also widespread concern about the future of our high streets. Damning polling by the Liberal Democrats reveal that 55% per cent of people in the Southeast believe their local pub will close, and 60% believe cafés and restaurants are at risk.

What therefore would a Liberal Democrat budget look like? We would be delivering an emergency package of support for our high streets through a 5p cut in VAT for the hospitality sector until 2027. This would reduce prices and encourage customers back in, increasing footfall and revenue for Chichester’ pubs, cafes and restaurants.

We would also bring energy bills down for all people, including businesses, by removing the Renewables Obligation Levy from energy bills. Energy bills are on average 12% higher than at the beginning of this Parliament and continue to rise. This is unsustainable on top of the increase in water bills and other costs.

We would fund these two reductions with a windfall tax on the big banks, which would raise an estimated £12bn. Alongside an increase in the digital services tax from 4% to 10% for social media giants and an increase on remote gambling duty. We would also rip up some of the red tape to allow our businesses to trade with Europe. This would allow us to avoid tax rises on people already struggling to get by.

I will be watching on Wednesday from the Chamber – let us see how many of our revenue raisers the Chancellor announces!