An appeal for the Isle of Wight council to support small businesses and seek help from Westminster passed without opposition at County Hall on Wednesday evening.
The motion presented by Councillor Matthew Price (Con), which stated it is now ‘crucial’ the council asks the government to support the Island’s businesses and retail sector in particular, was approved by Full Council with only three abstentions.
A review of ‘current impositions’
His proposition also called for a review of ‘current impositions’ on Isle of Wight enterprise to look into where ‘pressure can be lifted’.
This would ‘encourage growth’ and increase the Island’s attractiveness as a place to start a business.
Specific policies put forward were parking concessions, described as ‘proven’ in bringing customers back to retail areas in cities, towns and villages, and ‘unsecured government backed loans’.
Sympathetic response
The representative for Fairlee and Whippingham’s submission was met with sympathy across the council political spectrum.
Chancellor Rachel Reeves’s decision to hike the level of National Insurance contributions paid by employers in this year’s Autumn Statement was however a political focal point in the chamber.
Councillor Price’s proposals described the tax rise as a ‘huge financial burden’ on businesses.
Multiple councillors from different groups spoke out against the policy as part of endorsements for the motion.
Jarman: A knee-jerk reaction from the new government
Councillor Chris Jarman (Empowering Islanders), representative for Totland and Colwell, said,
“I think what we’ve got here is a move which is potentially of substantial detriment to our Island.
“It’s a poorly thought out measure and a knee-jerk reaction from the new government.
“In terms of its impact on the Island, I don’t think it could be broader: it’s effectively a tax on businesses, a tax on jobs and hence all our residents, a tax on this council as an employer, a tax on our contracted agencies as Cllr Mosdell has said and a tax on our suppliers.
“And importantly, it’s a tax on apprentices.”
Brodie: I have major concerns about these National Insurance changes
The councillor for Pan and Barton, Councillor Geoff Brodie (Ind Lab), said,
“I have major concerns about these National Insurance changes which are going to affect a small charity that I’m the treasurer of, Pan Together.”
Lilley: It has had a real, traumatic effect on our population
Councillor Michael Lilley (LibDem), who represents Ryde Appley and Elmfield, said,
“Ordinary working people who work for small businesses are extremely worried what is going to happen to them.
“Many of them, who might have voted Labour like Councillor Brodie did, are actually really wondering why they did now.
“It has had a real, traumatic effect on our population.”
Employers’ National Insurance to raise by 1.2 percentage points
On 30th October 2024, Reeves said in a budget speech:
“We will increase the rate of Employers’ National Insurance by 1.2 percentage points, to 15 per cent, from April 2025.
“And we will reduce the Secondary Threshold – the level at which employers start paying national insurance on each employee’s salary – from £9,100 per year to £5,000.
“This will raise £25 billion per year by the end of the forecast period. I know that this is a difficult choice. I do not take this decision lightly.
“We are asking business to contribute more and I know that there will be impacts of this measure felt beyond businesses. But in the circumstances that I have inherited, it is the right choice to make.
“Successful businesses depend on successful schools. Healthy businesses depend on a healthy NHS. And a strong economy depends on strong public finances.”
This article is from the BBC’s LDRS (Local Democracy Reporter Service) scheme, which News OnTheWight is taking part in. Some alterations and additions may have been made by OnTheWight. Ed
