Businesses in Rural Areas Debate
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Sarah Dyke
Main Page: Sarah Dyke (Liberal Democrat - Glastonbury and Somerton)Department Debates - View all Sarah Dyke's debates with the Department for Business and Trade
Businesses in Rural Areas
Sarah Dyke Excerpts(3 days, 19 hours ago)
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Sarah Dyke (Glastonbury and Somerton) (LD)
It is a pleasure to serve under your chairship, Mr Western. I thank my hon. Friend the Member for North Norfolk (Steff Aquarone) for securing this important debate and for his excellent speech.
Small rural businesses are the heartbeat of the economy in Glastonbury and Somerton, but many are in crisis. The Government’s increase in employer’s national insurance contributions is an aggressive measure that disproportionately burdens the rural economy. Jacqueline, the owner of two businesses in my constituency, has gone from being in profit to laying off four members of staff. The Liberal Democrats have opposed the rise at every turn, knowing the devastating impact that it will have on rural businesses.
The Chancellor’s choice to introduce permanently lower multipliers for retail, hospitality and leisure properties from 2026 will punish significant rural employers at a time when the Government should be supporting them. The Kings Arms in Charlton Horethorne is a thriving rural pub, but the owners contacted me recently to say that the changes to business rates could cause its closure. Overt Locke, a Somerton hardware store, is also experiencing economic collapse. Indeed, it did close—the previous owners had to sell up—but luckily the new owners, Rob and Louise, have resurrected the business; however, it will be profitable only if business rates relief is sustained at 75%.
The Liberal Democrats would scrap the broken business rates system and replace it with a commercial landowner levy that taxes land value, not productive investment. When rural businesses fail, we lose not just livelihoods but the social and economic fabric of our countryside.