Lib Dems blame Brexit for one million shops closing since EU referendum

PUBLISHED: 22:30 06 December 2019 | UPDATED: 23:01 06 December 2019

Almost one million businesses in the UK have closed in the past three years, new analysis by the Liberal Democrats has revealed. Photo: Aaron Chown/PA Wire

Almost one million businesses in the UK have closed in the past three years, new analysis by the Liberal Democrats has revealed. Photo: Aaron Chown/PA Wire

Almost one million businesses in the UK have closed since the EU referendum, new analysis by the Liberal Democrats has revealed.

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The party says it shows how Brexit uncertainty under the Tory government is hitting the country's high strets.

The Liberal Democrats are due to unveil a series of measures to reverse the decline and boost small businesses, marking 'Small Business Saturday'.

Figures from the ONS show that 978,285 businesses closed their doors between 2016-2018. This is an increase of almost a third (28%) compared to the 765,000 businesses that closed in the three previous years.

The Federation of Small Businesses has warned that a no deal Brexit, which Boris Johnson has repeatedly refused to rule out, would mean more damage to firms.

Firms are also being held back by the Conservative government's failure to reform business rates, and by new taxes on the self-employed that business groups have described as "disastrous".

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Chuka Umunna, who led the campaign to introduce Small Business Saturday in the UK, said: "Since its launch in the UK in 2013, Small Business Saturday has been an opportunity to celebrate the hard work of independent small businesses that contribute so much to their local communities.

"But it's also a time to consider the challenges being faced by business owners and entrepreneurs who are struggling to keep their businesses afloat.

"This Conservative government has completely failed small businesses, saddling them with years of Brexit uncertainty and ignoring urgent calls to reform business rates.

"Boris Johnson now wants to plough ahead with crashing the UK out of the EU, which would mean even more damage to businesses up and down the country."

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Lib Dem shadow secretary for business Sam Gyimah, added: "Each business closed represents jobs, investment and opportunities lost to our country.

"Now Boris Johnson's Conservatives want to plunge small businesses into even more uncertainty by pursuing a Brexit plan that risks yet another No Deal cliff edge in December 2020. They have lost any right to call themselves the party of business.

"Liberal Democrats are proud to be a party that supports businesses. We will stop Brexit, get back to the dealing with the issues that really matter to small businesses and build a brighter future."

The Lib Dem manifesto pledges to boost small business by scrapping business rates and replacing them with a land value tax on landlords, alongside reviewing taxes to support those who are self-employed.

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