The number of companies deregistering for VAT, which the Government use as a measure of how many businesses have closed, has jumped from 151,900 in 1997 to 176,040 in 2002, a massive 16% rise.   In the same period new VAT registrations across the UK has fallen by 6.3%. 

Worse still, the number of businesses folding in England’s most deprived local authorities has leapt by up to 67%.  

In Knowsley VAT registrations have fallen by 11.9 %, from 210 to 185 between 1997 and 2002, while de-registrations have increased by 3%, from 165 to 170.

Commenting Cllr Dave Smithson, Liberal Democrat Spokesman on Small Business in Knowsley, said: “Despite growth in employment in the Borough both the Government and the Council have a dismal record of supporting small business to date, with business closures soaring by 16% nationally and 3% locally since Labour took office. 

“Labour’s vision to ‘make the UK the best place in the world to start and grow a business’ has become little more than a pipe dream. 

“The Liberal Democrats would set businesses free from Government bureaucracy. The Whitehall machine must be trimmed back and the savings re-distributed to help local businesses on the ground.”
ENDS