During departmental questions in the House of Commons, Stephen Morgan MP seized the opportunity to question the Parliamentary Under Secretary of State for Enterprise and Markets on what actions Ministers are tackling the challenges small businesses in Portsmouth are facing.
It comes as Ordnance Survey data covering Portsmouth’s high streets revealed that retail services have closed in Portsmouth at triple the rate nationally.
Analysis previously revealed that the UK has lost over 6,000 pubs, 4,000 local shops and 9,000 bank branches from local high streets since 2010 when the Conservatives went into government.
Other small businesses across Portsmouth are similarly struggling due to growing business rates, supply chain issues and soaring energy prices. Under the Tories, SMEs have been put through one crisis to the next, with next to no support from the Government.
Standing up for small businesses in Portsmouth, Mr Morgan asked:
“Portsmouth’s fantastic small and family run businesses tell me that after the Tories crashed the economy, they are really struggling with rising business rates, supply chain issues and soaring energy costs.
Why doesn’t the Minister just adopt Labour’s plan to scrap business rates, and replace them with a system fit for the 21st century?”
The current business rate system is regressive and is holding back small businesses from achieving their growth potential.
Labour has committed to freezing and eventually scrapping business rates, as part of a wider overhaul of business rates taxation leading to fundamental system reform. This will be paid for by making sure larger corporations pay their way, and scrapping tax reliefs that don’t deliver for the taxpayer or economy.
Mike Cherry, the chair of the Federation of Small Businesses, previously said the principle would be a hugely positive step for many high street businesses:
“The gauntlet has been thrown down by the opposition, and we hope government ministers are listening. This is what a pro-small business tax policy looks like.
This proposal marks a welcome call to action that would take more small businesses out of the regressive rates system and rightly looks ahead to more fundamental reform”
Commenting Portsmouth South MP Stephen Morgan said:
“I am proud that in 2020 Portsmouth was named the most entrepreneurial city in the UK. This entrepreneurial spirit is on full display with the sheer number of brilliant startups that pop up across the city.
Portsmouth’s small businesses are fizzing with potential to grow to an international scale, but it is this Conservative Government which is holding them back through inaction and underinvestment.
That is why I am calling on the Government to adopt Labour’s plan to fundamentally transform how our business rate system works”
Mr Morgan has taken a range of action to lobby on behalf of small businesses, including campaigning for levelling up funding for the city centre, working alongside small businesses to hear their concerns, and raising issues on the floor of the house with Ministers. His ‘Support Local’ campaign showcases the contributions small and independent businesses make to the local economy.
You can view Mr Morgan’s question and the government response here.
