Labour Loses Small Business Support: Tax Burden Bites
Labour Loses Small Business Support Over Tax Burden

A letter from Nicola Powell, owner of a small independent restaurant in Margate, Kent, responds to the Guardian's report on Labour's poor local election results, particularly the loss of support among small business owners. Powell, a traditional Labour supporter, expresses frustration that the party no longer recognises entrepreneurs like her as 'working people'.

The Plight of Small Businesses

Powell highlights that thousands of small businesses in hospitality, hair and beauty, retail, and trades are the backbone of local economies, yet their owners are taking home increasingly modest incomes. Her restaurant turned over approximately £350,000 last year, generating nearly £100,000 for the Treasury through VAT, PAYE, and National Insurance. Despite this substantial contribution, her personal income has fallen below minimum wage when accounting for the long hours she works.

Tax Burden and Exhaustion

'I did not become poorer because I stopped working. I became poorer while working harder than ever,' Powell writes. She criticises Labour's rhetoric about 'those with the broadest shoulders bearing the heavier burden,' arguing that small business owners' shoulders are not broad; they are exhausted. If small businesses disappear, the Treasury would lose not only jobs and local economies but also significant tax revenue.

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A Call for Recognition

Powell concludes by reaffirming her belief that Labour should represent all working people, including business owners. 'Business owners are not separate from working people. We are working people too,' she says.

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