Angela Eagle: Government should cut VAT to help support the high street

Jan 18 2012

AS YOU look around shopping areas in Wirral one thing is clear – the Government is failing the high street.

Ministers are simply not doing enough to support firms in the retail sector. They have torn up the business support which existed under the previous government without putting in place an effective replacement, cut funding for regional growth and sold off Regional Development Agency assets which could have been used to boost local growth.

Local areas and regions are being held back at a critical time for the economy.

Ministers have failed to take the action needed to ensure that firms, in particular small and medium-sized enterprises (SMEs), can access the finance they need on reasonable terms.

According to the most recent SME Finance Monitor, more than half of firms applying for an overdraft facility for the first time are turned down. Too often business owners are forced to rely on personal finance, which is completely unacceptable.

The downturn has hit our high streets hard. There are 12,000 fewer shops on our high streets than two years ago.

That is why I am calling on the Government to cut VAT temporarily, repeat Labour’s empty shops initiative and give communities a real say in developing a plan for their local shops.