Lib Dems to push for small business tax cuts at election

Liberal Democrats leader Sir Ed Davey tries his hand at cocktail making during a visit to Bar Bodega in Watford - Credit: PA

Liberal Democrat leader Sir Ed Davey are calling on Boris Johnson to cut taxes for small firms as he kicks off the party’s local elections campaign.

Sir Ed wants the government to slash national insurance contributions for small firms to help aid the country’s recovery from the coronavirus pandemic and spark a recruitment boom.

In a speech in Watford on Tuesday, the former cabinet minister said: “By voting Liberal Democrats this May you will be telling the Tories to cut taxes for small businesses and invest more to create greener, cleaner neighbourhoods.”

As he gears his party up for the May 6 poll, Sir Ed is set to push for the prime minister to help struggling small businesses by quadrupling the employment allowance from £4,000 to £16,000, a move that would provide small firms with a cut in national insurance contributions, according to the Lib Dems.

“If the Conservatives were really committed to rebuilding local communities, they should be giving small businesses a tax cut to take on more staff and radically reforming business rates,” he said.

“But only the Liberal Democrats have clear plans to do that.”

The ex-energy secretary announced plans for a “locally-led green transition”, which the party says is backed by £48 billion of investment.

The senior politician is expected to emphasise the efforts of Lib Dem councillors during the Covid crisis, heaping praise on the party’s 2,500-plus representatives for providing care home residents with smartphones while in-person visits were banned and volunteering at vaccination centres.