This week, Lisa Smart, Liberal Democrat MP for Hazel Grove, spoke in parliament against the increase in employers National Insurance contributions, citing a number of small businesses that have already contacted her to express their concerns about the upcoming national insurance hike. Today Stockport’s Liberal Democrats have echoed her worries, saying that the government have created “yet another obstacle” for small business growth.
Leader of Stockport Council, Cllr Mark Hunter, said: “This week, Lisa spoke in parliament of the damage that this policy could do to businesses, giving two of the many examples within her constituency. I’m sure all MPs would echo her sentiment, as this is a national policy that will be felt at most keenly at a local level by small businesses and communities across the country. This on the eve of tomorrow’s Small Business Saturday, a time that we encourage everyone to do their bit for their local businesses in the run up to Christmas.
“At a time where we have seen £1 billion worth of regeneration within Stockport town centre, one of the most positive outcomes has been to see so many small businesses flourish as a result. This ill-thought policy will create yet another obstacle for small businesses, who already have to face up to the difficult economic context.”
However, it is not just small businesses that will suffer as a result of the hike, with local authorities also facing up to the potentially dire consequences of their providers for social care and other services having to increase their fees.
According to the Local Government Association, if nothing is done to cover the costs that councils will face, it will lead to up to a £1.13 billion increase in indirect costs via external providers including up to £628 million for commissioned adult social care services
Portfolio Holder for Finance, Cllr Jilly Julian, said: “While the government have promised extra funding for local authorities in a time of widespread financial turmoil, the increase in national insurance contributions will mean that there are vast increases in cost- the government have given with one hand and taken it back with the other.
“The impact of this policy means that every organisation we work with- charities, strategic partners or healthcare organisations, will all face additional cost. Added to the changes in business rates relief, the hospitality and retail sectors will now face a ‘double whammy’ of costs. In a time when the government is pursuing a programme of economic growth, they have hamstrung small businesses, local authorities, charities and beyond with their decisions.”
