If we want to reduce the likelihood of redundancies, then we need to support small businesses

Nigel Evans, Member of Parliament for the Ribble Valley and Fulwood, today backed David Cameron's call on the Government to help small businesses face the uncertain economic climate. The Leader of the Opposition has proposed a number of measures which could make a real difference to small businesses across the country.

Speaking from Westminster, Mr. Evans said:

"We need to save our small businesses!

"Small and Medium-sized Enterprises (SMEs) are the lifeblood of our country's economy. They employ over 13 million people, but they are often the hardest hit during an economic downturn. There are many businesses in East Lancashire who need all the support they can get right now.

"First, we would like small businesses to be able to defer their VAT bills for up to six months. So, for example, a business with 50 employees, revenues of £5m and an annual net VAT bill of £350,000 wouldn't have to pay £90,000 to the taxman when the bank has just taken away its overdraft. And smaller businesses would benefit too in a similar way.

"Second, small businesses in East Lancashire do not need the Government’s proposed 2p increase in Corporation Tax and we'd like to see the Treasury scrap that increase.

"Third, David Cameron has proposed a 1p cut in National Insurance for small businesses. This might not sound like much, but it could save a small business up to £600 - that's enough to pay the interest on an outstanding loan.

"If we want to reduce the likelihood of redundancies, then we need to support small businesses by ensuring their cash flow stays liquid."