We must all play a part in helping small firms

Feb 11 2009 By Ian Taylor, MP for Esher & Walton

Ian Taylor MP

The attractiveness of our communities is improved if there is a good mix of shops and restaurants, including those with a local connection as well as national chains.

But local outlets are under strain from higher rents and rates while the current recession has made things worse.

Other businesses in Elmbridge are also suffering. So to find out more details, I recently hosted a meeting at the House of Commons with chambers of commerce, business groups and Business Link to discuss with them the impact of the economic downturn.

This meeting was very useful in highlighting many of the problems and where action is needed.

It is evident much of the taxpayers' funds to bail out banks is not finding its way to loans to small and medium-sized companies.

This has led to a proposal to establish a council-run bank similar to the proposals put forward by Essex County Council and Birmingham City Council to provide funds for struggling local businesses that cannot obtain loans from High Street banks - subject of course to close scrutiny of the viability of such firms.

You may have seen reports in the media on this and BBC Radio 4's Moneybox has featured the story. I have asked our local authorities if they will explore this idea.

In addition to the above, there was widespread recognition that 'footfall' in high streets would be deterred if parking charges across Elmbridge rise too high.

People need to drop in to their local shops and restaurants as often as possible.

I am exploring this issue in the wider context of the Local Authority Business Group Incentive, which provides central government funds to local authorities to assist business.

I understand now Elmbridge Council is inviting ideas as to how best these funds might be allocated to boost local commerce.

Other major worries included the stance taken by HM Revenue and Customs in the demands and penalties in respect of VAT and the costs to companies of redundancy payments.

I have raised all the points drawn to my attention with the relevant authorities and will press for answers.

It is absolutely vital we all do what we can to support our local businesses if they are to survive the current economic climate. They are key parts of our communities - use them or lose them!