Speaking to the North East press this week on the subject of small businesses, Party leader David Cameron said “Gordon Brown has been spending his days on a whirlwind tour of foreign summits – but it’s back home in the real economy where people are really feeling the pain. The real economy isn’t a place of the jargon or statistics that we’ve heard so much about in recent weeks. The real economy is a place of real people who now have real worries about what lies ahead – about their jobs, homes, and livelihoods. The real economy is found in places like the North East where unemployment is rising, and where we’re seeing family budgets under real threat.At the heart of the real economy are the small and medium-sized businesses which have a turnover of £1,440 billion a year and employ more than 13 million people. They are the lifeblood of our economy – and many of them desperately need our help.
“A recent survey of small firms in the North East revealed the real pressures caused by the downturn. More than half of those surveyed felt that they were further from retirement than they were last year. Rising costs and a slump in trade are taking their toll on those who power our local economies. To add to their troubles, many felt that they had been abandoned by the Government. These are the people we need to help, and that’s why this week we launched our small business plan. It’s about economic responsibility – and everyone must play their part. Most importantly, the Government must play its part.
“For small businesses, the margin between survival and bankruptcy is painfully tight. That’s why we would cut the small companies tax rate down to 20 percent. Gordon Brown is actually planning to increase this to 22 percent next year. He’s u-turned before – and he needs to again. Next we would give all small and medium-sized businesses the chance to delay their VAT payments for up to six months. This could really help for those struggling with cash flow problems. Third, we would cut employers’ national insurance by one percent for every firm with fewer than five workers –a move that would affect over two million jobs.
“Taken together, this package of proposals would help small businesses that are suffering and help keep workers in their jobs through Christmas and into next year. But it’s not just about what Government can do. We’ve all got a responsibility. Banks have got to treat small companies fairly. As I’ve said directly to the bank bosses: the taxpayer stood behind the banks in their hour of need, and we expect the same from the banks now small businesses are in trouble. Councils need to do their bit too, by paying any bills they owe to small businesses as soon as possible. And as individuals, we all have a responsibility, where possible, to support our local businesses by spending on them. There’s a simple rule with small and local businesses: use them or lose them.
“In the long-run, there’s a key role for everyone in moving to a more responsible economy. Freedom without responsibility – that’s the record of the last eleven years. Forget what Gordon Brown says. This downturn was made in Britain and designed by him and we all need to do our bit in the next weeks, months, and years ahead to repair the damage he’s done.
“Over the past couple of weeks, we were right to intervene and prevent the beating heart of our economy – the financial system – from collapsing. Now, it’s right and necessary that we do the same for its lifeblood – small businesses. And with our plan for a more responsible economy, we will.”
