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Councillors Express Concerns Over Labour Government Budget’s Impact on Small Businesses

Motion Presented to the Chancellor

In a significant move, councillors from Stockton Council have officially voted in favor of a motion to express their concerns regarding the detrimental effects of the Labour government’s Budget and policies on the local small business landscape. The motion was championed by Councillor Niall Innes, who represents Hartburn as a Conservative member. He argued that the council must act as the voice for the small businesses in their borough, asserting that this situation transcends party lines and is a matter of conscience.

Political Divide in Council Discussion

Despite the urgency of the issue, Labour councillors rejected the motion, labeling it a politically charged maneuver rather than a genuine appeal to address the concerns of vulnerable businesses. They expressed reluctance to align with a motion characterized as politicized, indicating that they would seek to lobby the government independently.

Small Businesses Facing Economic Strain

Cllr Innes made an impassioned plea, underscoring the critical role that small businesses play in the vitality of both towns and communities in the borough. He emphasized the unprecedented hardships these businesses have faced over the past 18 months, with recent alarm over proposed business rate hikes contributing to an already dire situation. Some pubs have reported increases in business rates soaring by 76%, with certain establishments facing staggering rises of up to 122%. Innes stated, "This is life or death for certain businesses in this borough," as he highlighted the urgent need for decisive action.

Urging Reform on Business Rates

Cllr Innes articulated the pressing need for action, calling on the council to formally address Chancellor Rachel Reeves. He urged her to consider the severe impact of the government’s fiscal policies and the lack of reform in business rates, stating that these factors could lead to large-scale closures, significant job losses, and irreversible harm to local high streets. He specifically highlighted the hospitality sector, pleading for reforms that would alleviate the "unsustainable pressures" confronting pubs, restaurants, and small businesses.

In the proposed letter from the council’s top executive, Innes suggested that it should emphasize the dire circumstances facing Stockton’s businesses and advocate for "urgent, targeted support" aimed at protecting local employment, sustaining enterprises, and preserving the essence of community life.

A Call to Support Economic Growth

Fellow Conservative group leader Cllr Tony Riordan echoed the sentiments of Cllr Innes, challenging council members to reflect deeply on their stance. "Do you want to help our pubs, restaurants, and small businesses survive, provide employment, and spur economic growth?" he prompted. This call to action emphasized the broader implication of the current fiscal environment on local economic health and community well-being.

Cllr Jack Miller added depth to the discussion by expressing how small businesses and hospitality venues are facing overwhelming pressures. He revealed that business owners consistently report rising expenses that threaten their existence, reminding everyone that these challenges are not abstract numbers but represent the livelihoods of local families.

Diverging Opinions on Political Dynamics

While Conservative members pushed for unity in the face of adversity, Labour representatives maintained their stance against the motion, indicating it reflected "overtly political" motivations. Cllr Paul Rowling, deputy leader and Labour member for the town center, articulated a sentiment of disappointment, stating that had the motion been more apolitical, it would have garnered broader support.

In a notable rebuttal, Rowling highlighted the failed policies of past Conservative governments, asserting that discussions around support for businesses should not diverge into political attacks but focus on pragmatic solutions for hard-working constituents.

Voices Calling for Compromise

As the debate continued, some voices emerged in support of taking decisive action for small businesses without getting bogged down in political rhetoric. Cllr Ray Godwin suggested that, despite the politicization of the moment, the necessity for action remains urgent, as businesses cannot afford to delay.

The Outcome of the Vote

Ultimately, the motion passed by a narrow margin of 26 votes to 21, with all Conservative and independent councillors backing it while Labour members remained opposed. This result reaffirms the council’s awareness of the pressing challenges facing local businesses.

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