Budget Resolutions

Debate between Gideon Amos and Victoria Collins

Tuesday 3rd November 2026 Commons Chamber

[Victoria Collins]

Absolutely. That is why we need wholesale reform, looking at how we are supporting the businesses that need it and at the broken business rates system.

Charlotte from Berkhamsted Bookshop tells me that the average independent bookshop will need to sell over 1,000 more books a year just to cover rising costs. Christopher, who runs a small martial arts academy in Tring, tells me that rising rent and service charges threaten his future, with almost no protection for small commercial tenants. Liberal Democrats have repeatedly called for more to be done to help our local businesses, including replacing business rates with a commercial landowner levy and cutting VAT on hospitality by 5p.

[Gideon Amos]

Does my hon. Friend agree with my constituent, Philippe Messy, who runs the excellent Little Wine Shop in Taunton, who was hoping to see a big move in VAT, but who has instead described the Budget as “a soufflé that did not rise—flat, flat, flat”?

[Victoria Collins]

I could not have put it better myself. On top of that there is the cost of hiring, as has been mentioned again and again. The Government have to tackle that for businesses.

If we truly want fresh hope for the future and for our wider economy, we need bold action. Supporting our entrepreneurs is key, and as Lib Dems who have pushed for a type of young entrepreneurs allowance for almost a decade, we are pleased to see that proposal and look forward to hearing more details. I would also push the Government to look at further work to support start-ups and scale-ups, including reviewing the seed enterprise investment scheme, tax on SEIS, tax credits and relief so that they work for businesses.

As for the founders’ relief, I ask the Government to work with the industry to ensure that it works. One founder said to me that they felt that if they stood on one leg and turned around enough times they might just about get close to getting some of it.

On incentivising innovation, the Government must take spin-outs from our world-leading universities across the UK more seriously. We are calling for the Government to quintuple proof-of-concept funding, create regional innovation centres and introduce standardised frameworks for negotiating intellectual property across the sector. As regards innovative spending, the extra £120 million for the Sovereign AI fund pales in comparison to the nearly £8 billion of active contracts with US tech giants or the billions spent on procurement. We call for a proper digital sovereign strategy to back our British businesses and to look at increasing research and development spending, so that we do not have to make decisions over Jodrell Bank, for example, and how that is impacting innovation.

Finally, we need a bold plan on Europe. We are calling for a growth and defence partnership with Europe, rejoining the single market and customs union. Not only can we cut taxes for families with that growth dividend, but inject real growth into our economy for families, businesses and our future.