Tory plan to withdraw local business support

Brighton Tories' ideas for the local economy would leave local businesses up to £ 4million out of pocket.

A motion proposed by the Conservative Councillors on Thursday 4th December, was strongly criticised by the Labour Group as Opposition Spokesman for finance, Cllr Les Hamilton, tore apart Cllr Jan Young's plan for local businesses.

The Tory proposal of setting businesses rates locally would leave the city's tax payers or businesses to pick up a shortfall of up to £4 million.

The current system allows for Brighton's businesses to pay in to a central national pot that is then fairly distributed, with Brighton and Hove receiving £3.742 million more it actually put in.

Councillor Les Hamilton said "The ill-conceived motion suggested by Conservative Cllr Jan Young is an excellent example of the administration's lack of ability when it comes to running Brighton and Hove's finances. To remove the current business rate system, would mean that our local businesses and tax payers could have to cover a shortfall of £3.742 million. Local business need practical local action now, not amateur suggestions designed to grab headlines."

Labour has pointed out the benefits of the Chancellor's recently announced help for business. The Conservative council administration refused to welcome the following measures:

• Temporary reduction in VAT by 2.5% to 15%, from 1st Dec to 31st Dec 09.
• Create a £1bn Small Business Guarantee Facility to enable new Government-supported lending by banks for sums between £1,000 and £1m, at cheaper rates and for longer periods.
• Create a £1bn Export Credit Guarantee scheme with the banks to support smaller exporters with short-term working capital and trade finance.
• Provide more generous temporary tax relief for businesses suffering losses - with up to £50,000 of new losses set against taxable profits from the last three years.
• Introduce a new HMRC Business Payment Support service to help with temporary difficulty in paying bills. Paying VAT, corporation tax, income tax and NICs on a timetable you can afford.
• Exempt some properties from business rates. From 09-10 - empty commercial properties with a rateable value below £15,000 will be exempt from business rates, this covers 70% of all empty properties.
• £25 million investment fund for women-led businesses.

 

Councillor Gill Mitchell, Leader of the Labour Group, said: "It is very worrying that even with an issue as serious as our City's economy, the Conservatives were unwilling to put party politics aside and promote practical action to help our local businesses. It raises serious questions about their judgement when they could not even welcome government measures that provided £25 million worth of investment for women led-business or the creation of a £1billion Small Business Guarantee Facility to enable new Government-supported lending by banks for sums between £1,000 and £1million, at cheaper rates and for longer periods.