The Government's strategy of cutting spending and raising taxes has come too quickly, leaving businesses struggling to survive in the current climate, according to Labour shadow minister for small business Toby Perkins, who hit out at the Government strategy as damaging to small and medium sized enterprises (SMEs).
The comments follow the results of yesterday's survey from the Federation of Small Businesses, which showed confidence at an all time low. Mr Perkins warned that the current strategy has seen the Government plunge into further debt with borrowings reaching £158 billion above their previous target due to slow growth.
"The Tory-led Government's decision to cut spending and raise taxes too far and too fast has hit businesses hard and choked off the economic recovery," he said. Instead, he said the Government should adopt some of the proposals from Labour's five-point plan for growth and jobs. These include national insurance holidays for those SMEs taking on extra workers and a temporary VAT cut to provide a boost to the UK economy.
"It's time this Government changed course and worked to help hard-pressed businesses so we can get the deficit down in a fairer and better way," he added.