Labour’s business tax raids have been condemned by a Question Time audience, with one woman telling Business Secretary Jonathan Reynolds she has been put off creating a start-up.
The Cabinet minister was asked by Jill Harris whether the planned increase in taxes will harm the economy and how the Government can hope to encourage entrepreneurship with the raid.
BBC host Fiona Bruce asked Ms Harris how the changes will affect her. Ms Harris: “Because we don’t have a huge number of employees, the negatives and positives to changes in National Insurance don’t have a great impact on us, but I know many people who do.
“I have a friend who is a hairdresser and his costs are going to go up £2,000 a month as a result of the increase in the national minimum wage and also changes to national insurance.”
Mr Reynolds insisted the Government is protecting small businesses and employers through other changes to the tax system.
However, he “readily acknowledged” that the Government is asking “a lot” of small businesses in other areas, blaming the economic inheritance left to them by the Conservatives.
Mr Reynolds was also confronted by a second audience member who blasted the Government’s plans as “just not right!”
She fumed: “I have been a business owner myself, and I’m also an employee, so I see different sides of it.
“As an entrepreneur, I’m also wanting to start up a new business but I’m not encouraged by what the Government are offering and quite frankly I’d rather stay and be an employee.
“Also on the effect on employees, those on the lower income – how can we sustain paying that increase in National Insurance?
“It’s just not right! There’s something wrong there and it needs to be reviewed.”
