Farron urges Chancellor not to punish small business owners in next week’s budget

South Lakes MP Tim Farron has urged Philip Hammond to re-think plans to punish local businesses with a huge tax hike in the Autumn budget.

According to reports, the Chancellor is considering significantly reducing the VAT threshold for businesses.

At the moment, small companies with a turnover under £85,000 a year do not have to charge VAT on goods and services they sell.

However, it is believed that the government are planning on cutting the threshold down to £43,000, plunging thousands of businesses into major uncertainty.

Tim said: "These plans are a huge kick in the teeth for local hard-working small business owners.

"Forcing small companies to charge VAT on their products will result in rising prices, businesses closing, and workers losing their jobs.

"After trying to raise their National Insurance Contributions earlier this year and now dragging them into charging VAT, it is clear that government are hell-bent on punishing hard-working small business owners, who are vital to the South Lakes economy."