Angus businesses warned of "tax bombshell"

Small and medium-sized businesses, from tech start-ups to hairdressers and cafes, in Angus will pay an extra £4 million a year due to the increase, according to research commissioned by the Liberal Democrats.

Employer National Insurance Contributions have been raised by 1.25%, due to apply from next year, which will impact on small businesses in Angus and across the country.

House of Commons Library research has detailed the impact of the tax rises, and it is estimated that the average micro-business employing up to nine people will pay more than £1000 extra a year as a result of the tax hike.

The Liberal Democrats are calling for small businesses to be offered a lifeline by slashing their employer’s national insurance contributions instead of raising them.

Under the party’s proposals, the Employment Allowance would be quadrupled from £4000 to £16,000 for at least two years, meaning taxes on small businesses would be slashed by £5.5 billion across the country next year.

Ben Lawrie, Liberal Democrat councillor for Monifieth & Sidlaw said: “The Government’s broken manifesto promise will create a £4 million tax bombshell for small businesses in our local community.

“Small businesses have been hit hard by the pandemic and our high streets have been struggling for years.

"The last thing businesses in Angus need right now are damaging tax rises.

“Angus Liberal Democrats are calling for a tax cut for local entrepreneurs and business owners, to help them create jobs and drive our economic recovery.”

Christine Jardine, the Liberal Democrat treasury spokesperson, commented on the findings and said that small businesses are being denied the opportunity to properly recover from recent trading conditions.

She said: “We have already lost far too many treasured shops from our high streets, and too many businesses are drowning in tax rises and red tape. Rishi Sunak must give small businesses the chance to grow again instead of clobbering them with a crippling tax rise. The Chancellor is out of touch with small businesses and if he truly cared about their survival, he would cancel this tax hike immediately.”