Support Our Small Shops

I am convinced that small shops are at the heart of our high streets and town centres. They offer diversity and choice and provide a really personal service to their community.

Yet in many communities these independent retailers are under threat. They face a rising burden of regulation and tax, a daily battle against crime and violence, and competition from the growth of out-of-town shopping centres. It is estimated that 2000 shops close every year.

Cutting taxes

We are committed to cutting small company corporation tax rates from 22p to 20p, reversing Labour’s £370 million tax hike. This will help reduce costs and ease cash flow.

Help with cash flow

Conservatives would allow small and medium sized businesses to defer their VAT bills for up to six months. For a typical business with a VAT bill of £350,000, this could mean that businesses would not need to find £90,000 now, which could be the difference between survival and failure. It would not be appropriate for all SME’s but could help some survive.

Keep jobs

Conservatives would cut payroll taxes for the smallest employers (less than 5 employees), to help them save money and so keep jobs. That would mean that a local firm, with say four employees and a wage bill of £150,000 would save £100 every month.

In the long term we need to end this period of boom and bust and build a better economy. We will introduce a simpler and more effective tax system, cut the headline rate of corporation tax for businesses, and tackle red tape.

The real challenge in this credit crunch is to get credit flowing again. That is why we have proposed a £50 billion National Loan Guarantee Scheme to get lending going and protect jobs.