"We're seeing a record number of insolvencies": Conservative Party Chair visits Essex high street
Kevin Hollinrake has Shenfield high street
On a visit to businesses in Essex, the chairman of the Conservatives says Rachel Reeves' tax rises have been "self-defeating": "they've shrunk the economy and deflated business confidence".
Discounts on business rates for retail, leisure, and hospitality industries were reduced by 75% to 40% in the Chancellor's Autumn Budget.
This means, from April, small businesses have had to pay a sum nearly double every month.
Kay Thurgood has owned a card shop in Shenfield for sixteen years.
She is among those raising concerns after discounts were reduced four months ago:
"It's become harder to make any money. Our cost of supplies has gone up more than I can put my prices up. The cost of wages has increased substantially. National Insurance has gone up. And very importantly, business rates have almost doubled per month.
"It's harder to stay afloat. My customers say to me all the time: please don't go anywhere, we need you here. But that's the reality."
Nish Patel runs a wine store up the road and is feeling similar:
"Are we hiring new people? No. We are cutting hours where we can. It's become very very difficult."
"The average high street store could be paying anything between £300-400 per square metre. An Amazon warehouse will be paying something between £40 and £80 per square metre. I find the numbers incredible.
Both shopowners are calling on the Government to reform business rates.
The Chairman of the Conservative Party Kevin Hollinrake made a visit to Shenfield's high street with Essex mayoral candidate, Louise McKinlay.
During the visit he told Greatest Hits Radio: "I was in business for 30 years before politics, it's never easy in business, but it's never been more difficult than it is today."
"Confidence just isn't there right now. Customers are still using the local high street but when you're taking money and you're not making profit, that is very frustrating.
"It will mean some businesses go under, we're seeing record levels of insolvency right now.
"We're really trying to make sure the Government understands how difficult it is right now, particularly with the tax rises we've seen that are targeting small businesses.
"Rachel Reeves now has a £15bil blackhole because of lower tax receipts and higher borrowing.
"These tax rises are self-defeating. They aren't even going to a good purpose.
"They are damaging the economy and damaging the exchequer to the point that she's going to have to put taxes up even more."
The Chancellor is expected to announce changes in the Autumn Budget.