Independent businesses across Surrey are struggling under rising costs, Brexit red tape and tax hikes, Liberal Democrat leader Ed Davey has warned.

During a visit to the county this week, he accused ministers of acting like a “Grinch Government” as the festive season approaches.

During a visit to independent patisserie Bachmann’s in Thames Ditton with local MP Monica Harding on December 11, Mr Davey said business owners were facing multiple pressures. Slamming Labour as the ‘Grinch Government’, will the Lib Dems be the Cindy Lou of Christmas?

“It is absolutely devastating to see so many small businesses struggling with the insurmountable pressure of the cost of living crisis. Many fear this could be their last Christmas, and we cannot let that happen,” Mr Davey said.

Ms Harding, the Lib Dem MP for Esher and Walton, said local firms had been hit particularly hard since the Budget.

“The changes in the last budget, national insurance for employers, has had a profound impact on local businesses here. Many of them have had to cut hours,” she said.  

“It’s increased their cost exponentially, and this is at a time when prices are increasing, but also energy costs are sky high. And I’m really worried about local businesses on the high street. Also our hospitality… hospitality is really, really suffering at the moment.”

Polling by Savanta for the Liberal Democrats shows 65 percent of people across the South East are concerned about independent shops closing, with 55 percent worried about local pubs and 60 percent about cafes and restaurants.

Ms Harding said she was working closely with business groups locally, such as the BID in Walton and Esher, as well as councillors and our local authority. She added proper funding for councils could also boost local businesses. The MP said: “The Government needs to match the rhetoric with th proper funding.”

She added that the cost-of-living crisis had changed consumer habits: “Coming out for a cup of tea, or the great British traditional fish and chips… that’s become a luxury now.”

The Lib Dems are calling for a temporary 5 percent VAT cut to help cafés, pubs and restaurants. Mr Davey said high streets “shouldn’t be hit with more taxes”, arguing the focus should be on economic growth and easing red tape for small firms.

Mr Davey, MP for neighbouring Kingston and Surbiton, said ministers should pursue economic growth rather than further tax rises. “First of all, we shouldn’t be putting taxes up in the way that they’re doing,” he said. “If you grow the economy much faster, that raises tax revenue automatically… without putting up taxes.”

“Everyone is really worried about businesses on the high street struggling, struggling with higher tax and employer national insurance contributions, but also things like energy costs, and costs continuing from Brexit,” he said.

He added that “the red tape and the delays of Brexit meant that a lot of the ingredients he now has used to come direct to him, and now go via Ireland. Crazy.”

The Government has announced today a £2 million funding boost to help small and medium-sized businesses cut costs. The extra funding is said to help businesses lower their bills and become more energy efficient through investment in technology in areas like heating, insulation and solar power.