The Chancellor Rishi Sunak has said that the support grants and payouts to businesses must end soon. There is no doubt that these payments will dry up and we must ask what must be done in the aftermath?
We have seen many small local businesses and large businesses, especially in the leisure and hospitality sector and also many household names in the retail sector collapse into administration. There are also many cash rich companies that are “cutting the cloth” by driving down costs and restructuring their workforce meaning many more redundancies.
Now the Labour Party will always call on Government to protect workers and their rights by throwing money at the companies. I am all for making sure that every individual is treated with respect, with the right salary within the workplace for the job that they do. Throwing vast sums of money at an already failing business will not protect jobs or the rights of the workforce. It just prolongs the agony for those in the company that Labour are trying to “protect.”
What should the Government do?
The Government can only create the right economic conditions for businesses both small and large to grow and Government needs to not interfere with the markets. There needs to be big incentivising tax cuts in business rates and corporation tax. There needs to be a huge reduction, not a rise in income tax with a huge reduction on fuel duty to enable startups to transport their goods more cost effectively.
Many will of course argue that tax receipts will drop. It has been shown that if a government reduces taxes then actual tax revenues will rise. The theory within the Laffer curve.
I had a very interesting phone conversation with one of our members today and he told me that he had been made redundant last year. He told me that instead of staying stuck in fortress London, dreading the next round of restrictions. He moved back to his rural roots and is in the process of setting up his own business.
It is this type of individual action and attitude that the Government needs to encourage. They need to make it easier for people to start up a business and to keep the economic environment viable for owners to continue with these businesses and see them flourish.
The Chancellor needs to encourage this entrepreneurship in his budget on March 3rd 2021 and in the next couple months leading up to that budget. People have to realise that the Government will not solve their problems. It is the individual action and ingenuity of people to make their lives improve which will bring about an economic recovery.
The Libertarian Party being a minarchist party believe in minimal taxation and minimal intrusion from the Government into our lives.
We must tell people that the Government is not a productive institution. It does not have its own money, it does not add to the UK GDP. It drains money from its people, us.
So if you are about to be made redundant or have already been made redundant, don’t give up. Stay strong and be resilient so when the opportunity comes to you can grasp it with all your might. Don’t wait for Government to help you, pick yourself up, dust yourself off and carry on.
Glenville Gogerly EADW – Libertarian Party Chairman