Liz Jarvis

My hon. Friend makes an excellent point, which I will address shortly. Independent businesses face an incredibly tough environment. The reduction in retail, hospitality and leisure relief from 75% to 40% effectively leaves small businesses subsidising large chains. We are incredibly lucky to have many thriving independent businesses in Eastleigh, including AC Models, O’Briens, Artisan, the Coffee Cabin and Choices sandwiches. My constituent David, who is the owner of Steam Town Brew Co., told me that higher staffing costs are hitting his business hard. The employer national insurance contributions increase disincentivises businesses from investing in local jobs. I have also spoken with local hairdressers, including Jemma from Jemma George Hair Artistry and Jane from Elite Salon in Chandler’s Ford, about the challenges they are facing. They are worried about structural flaws in the VAT system for labour-intensive businesses, challenges to the employer model within the industry, and the lingering impact of the covid pandemic. Those small businesses enrich our high streets, but they are having to fight so hard and work incredibly long hours to make themselves viable. We should be celebrating entrepreneurship, not putting more roadblocks in their way. The previous Government left business rates unreformed, negotiated a disastrous Brexit deal, and oversaw a massive spiral in energy costs, rents and interest rates, all of which piled incredible pressure on high street businesses. So many of the challenges that those businesses are facing have been caused by policy choices made over the past decade. For all of the Reform party’s showboating, we have seen no coherent plan from it. Indeed, its Members have not even bothered to show up to this debate. The Liberal Democrats are calling for business rates to be replaced with a commercial landowner levy, so that we tax the land value, not the productive investment. That would give struggling high streets the breathing space that they desperately need. It is wrong that households and high streets are being punished while big banks, gambling companies and social media giants get away without paying their fair share. We must shift the tax burden away from small and medium-sized businesses and on to those with the broadest shoulders. Our communities deserve better than short-term stunts and uncosted Tory headlines. They deserve a long-term plan to revive our high streets, restore pride in our towns and put small businesses at the centre of Britain’s economic recovery.