A recent report on local election results highlighted Labour's declining support among small business owners. Nicola Powell, owner of a small independent restaurant in Margate, offers her perspective as a traditional Labour supporter who now feels abandoned by the party.
Labour's Tax Burden on Small Businesses
Labour's poor performance in local elections may reflect growing frustration among small business owners who no longer feel recognized as 'working people.' In sectors like hospitality, hair and beauty, retail, and trades, thousands of entrepreneurs keep local economies alive while earning increasingly modest incomes.
Last year, Powell's restaurant turned over approximately £350,000. After accounting for VAT, PAYE, and national insurance, the business contributed nearly £100,000 to the Treasury. Yet her personal income has fallen below minimum wage when considering the actual hours she works.
The Reality of Running a Small Business
Powell emphasizes that she did not become poorer because she stopped working; she became poorer while working harder than ever. She expresses despair at Labour's rhetoric that 'those with the broadest shoulders should bear the heavier burden,' arguing that small business owners' shoulders are not broad—they are exhausted.
If exhausted small businesses begin to disappear, the Treasury will lose not only jobs and local economies but also substantial tax revenue. Powell concludes that she always considered herself a Labour supporter because she believed the party represented working people, and business owners are working people too.
