Tory Government tax hike will administer nearly £10 million kicking to Newcastle's small businesses - scrap it and give them help instead say the Newcastle Liberal Democrats
On Small Business Saturday, a new analysis reveals that the Conservative manifesto-breaking tax rise will cost Newcastle's 3,500 small businesses nearly £10 million a year.
Liberal Democrats Leader Ed Davey will call for the planned tax hike to be scrapped during a visit to North Shropshire to mark Small Business Saturday.
Research published by the Liberal Democrats has revealed how many small businesses are set to be hit by Prime Minister Johnson's manifesto-breaking National Insurance tax rise.
Liberal Democrat Leader Ed Davey will today use a campaign visit to North Shropshire marking Small Business Saturday to call on the government to scrap the planned tax hike and offer much-needed relief to small businesses.
Robin Ashby, who speaks for Newcastle LIbreal Democrats on business issues, said of the analysis: "These figures show the damage this unfair tax rise will do to nearly 1 million entrepreneurs around the country already teetering on the edge, including many in Newcastle upon Tyne.
"Many business owners are worried about how they will get through the difficult winter months. But all PM Johnson and Chancellor Sunak can do is hit them with a manifesto-breaking jobs tax.
"People around the country are tired of Boris Johnson's broken promises and being taken for granted.
"The Conservatives must scrap this hated tax hike that will kick small businesses when they are already down."
Note on methodology : Local area data shows that there are 2.77 million VAT and/or PAYE based enterprises in the UK. This suggests that there are around 1.17 million businesses with 0 employees (2.77 million minus the Government's estimate of 1.6 million businesses with at least 1 employee). These 1.17 million businesses were shared across local areas using each area's share of the UK's businesses with 0-4 employees.
The House of Commons Library reckons the estimated 640,000 businesses who won't pay the levy between local areas using the share of the UK's businesses with 0-4 employees in each area (the same approach as with the 1.17 million businesses with 0 employees).It has assumed that all businesses with over 4 employees will pay the health and social care levy.
This analysis does not account for different earning levels in each area and therefore should be seen as an indicative estimate.