Voting SNP works for Glasgow East's small businesses

The SNP candidate in the Glasgow East by-election, Cllr John Mason, today visited businesses in the East End of Glasgow with John Swinney, MSP and Cabinet Secretary for Finance and Sustainable Growth as they talk to businesses about the benefits of the SNP's Small Business Bonus scheme and the potential for a Fuel Price Regulator to lift the burden of rising fuel costs on businesses in Glasgow East.

Commenting Cllr Mason said: "In 2007 the SNP promised we would reduce the business rates burden for small businesses when we were Government. We're in Government and we've delivered on that promise.

"At a time of rising fuel bills, made worse by Labour's high taxes, nearly 16,000 small businesses in Glasgow are benefiting from the introduction of the small business bonus with nearly 12,000 benefiting from having the burden of business rates lifted completely.
 

"Small businesses are the engine of the economy and over 97% of businesses employ less than 20 people with many of them being family run affairs. In a seat like Glasgow East they are often the main source of work for many people.

"By cutting business rates the SNP is helping businesses and their employees at a time of spiralling living costs while Labour's government in London is refusing to lift the burden of taxation.

"The small business bonus shows the SNP are on the side of Glasgow East's small businesses. It proves that voting SNP works. On 24th July the voters of Glasgow can send a message to the London Labour Government that they want similar action on the rising cost of living."

Supporting Cllr Mason in his campaign John Swinney said: "I am proud that the SNP Government has delivered much needed relief to small businesses throughout Scotland and Glasgow East with the small business bonus. With the costs of living spiralling and fuel and energy costs rising it is important Government steps in to provide help.

"However the London Labour Government is failing comprehensively to play its part. That is why a vote for Cllr John Mason will send a message to London that the people of the east End want action.

"Petrol prices have risen by over 20% in the past 12 months, and now increases in Vehicle Excise Duty could cause undue stress for small businesses.

"Labour had the chance in the House of Commons on 2nd July to reduce fuel costs at the pumps, leading to a reduction in business transport costs that would bring down prices for goods across the board, yet they voted against easing this burden.

"Labour have also refused to say that they will cancel the planned 2p rise in fuel duty in October.

"A victory for John Mason on 24th July will send a powerful message from the East End of Glasgow that enough is enough, that voting SNP works and that it's time for the UK Government to show the same support for businesses in this constituency that the Scottish Government has delivered."

Notes:

1. Cllr John Mason and John Swinney MSP visited McPhie's Craft Bakery, 15-27 Shettleston Road, and Marshalls, Gillies Lane, Baillieston.

2. The Small Business Bonus Scheme began on 1st April 2008 and progressively reduces the rates burden for businesses with properties of which the combined rateable value is £15,000 or less. The scheme will benefit 150,000 small businesses in Scotland.

In Glasgow alone it is estimated that up 16,000 small businesses will benefit.

Further information is available here.

3. Commenting on the Small Business Bonus Andy Willox of the Federation of Small Businesses has said: "…we are delighted that the Scottish Government has responded to us and moved quickly to implement a key manifesto commitment that will have a significant impact on the cashflow of tens of thousands of small businesses." (4th April 2008)

And a survey by the Forum of Private Business of small businesses in England & Wales found that "84% of respondents would like to see England and Wales follow Scotland's lead and allow more businesses to qualify for small business rates relief by increasing the threshold." (18th April 2008)

4. Fuel Duty Regulator – how it works:

The regulator mechanism would guarantee a double protection for motorists and the road haulage industry.

Firstly, higher oil prices would trigger an automatic freeze in fuel duty rates. Second, any extra cash raised from VAT on petrol or diesel as a result of the higher pump prices would go back into an equivalent cut in fuel duty. This makes obvious sense particularly with oil prices reaching record highs.

With taxes currently make up over 60% of the price of petrol and diesel and the regulator would result in an automatic freeze on fuel duty increases and a reduction in duty to match any increases in VAT.