Small businesses are the backbone of our economy. It is therefore vital that government does everything possible to help them thrive, in the interests of the wider economy and all of us, not just for small businesses themselves.
The Conservative Party has always recognised this. Instinctively, we want to ensure we have an economy where enterprise can flourish and is not held back. The recent Spring Statement from the Chancellor has provided a very welcome boost with a tax cut worth up to £1,000 for eligible businesses. There is an increase in the Employment Allowance from £4,000 to £5,000 which benefits nearly half a million businesses. That is about 30% of all UK firms and takes the total number of firms not paying the Health and Social Care Levy to 670,000, an increase of around 50,000.
This means that smaller firms will be able to claim up to £5,000 off their employer National Insurance Contributions. This should be seen in tandem with other tax cuts for small businesses, including 50% business rates relief, a record fuel duty cut and the super-deduction, making the largest two-year business tax cut in our history.
This is the third time the Conservative Government has increased the Employment Allowance since its introduction in 2014, demonstrating an enduring commitment to supporting smaller businesses. Firms will now be able to employ four full-time workers on the National Living Wage without paying employer National Insurance at all.
This is great news for jobs and growth and we will see locally-based small business here in Crawley benefit from it as we bounce back strongly from the pandemic. The increase in the Employment Allowance helps small firms do what they do best, creating and sustaining jobs.
Locally, we have seen major government investment by the Conservatives with £21 million awarded for Crawley from the Towns Fund. This will help our town better realise its full potential and attract even more future investment. In turn, this will assist in providing a more buoyant environment for our small businesses here in Crawley. After a tough time for many, things are looking up.
Councillor Duncan Crow, Leader of Crawley Borough Council Conservative Group
13th April 2022
