Zarah ChoudharyAlmost half (46%) of people polled anticipate that the number of small and medium-sized enterprises (SMEs) in their local area will decrease as a result of the recent National Insurance Contributions (NICs) hike, according to the Liberal Democrats.
This economic strain is expected to impact job availability, with 41% of people predicting a decline in the number of jobs at local SMEs.
More than half (56%) of respondents believed that costs for SMEs would rise, with 18% expecting a significant increase.
Additionally, close to three in 10 (28%) indicated that the tax hike would affect their own spending habits at local businesses.
The Liberal Democrats called on the Government to “urgently rethink” the tax hike, and scrap it for SMEs altogether.
The party, which voted against the increase in the past week and proposed its own amendment to block it, called for Labour to protect the stability of small businesses ahead of the holiday season.
Liberal Democrat Leader Ed Davey is expected to visit a small business in the South West today to understand firsthand how the new Budget is impacting local entrepreneurs.
His visit comes days before Small Business Saturday on 7th December, a day dedicated to celebrating and supporting small businesses across the UK.
Davey said: “Small businesses are the engine of our economy and the backbone of our communities. We need to be doing everything we can to support them.
“Many small businesses have already sounded the alarm over the government’s misguided national insurance hike, and this research lays bare just how worried people are about the damage it will do to local employers.
“After years of the Conservatives’ economic vandalism, this is the last thing these businesses need.
“The new government needs to urgently scrap this jobs tax and instead focus on how they can help small businesses, not burden them with more costs.”
