Stuart Anderson MP has championed South Shropshire's small businesses in Parliament. It was part of a Westminster Hall debate on the impact of changes to business rates relief on high street businesses.
The debate follows the Chancellor's decision to reduce support available via the Retail, Hospitality and Leisure (RHL) Relief Scheme from 75% to 40%. The change has raised tax liabilities for 410 pubs in Shropshire by £3,640 on average.
The reduction withdraws support worth £1.5 million from the sector in Shropshire and £925 million on a national scale. In his remarks, Stuart also urged Ministers to cut the rate of VAT levied on the sale of food and hot beverages in bars, restaurants and other venues to 12.5%.
Stuart has separately slammed a response that a Minister has given him about support for small businesses in South Shropshire. Stuart had tabled a written question in Parliament, enquiring about support for small businesses in rural areas like South Shropshire.
In a response published on 14th May 2025, Treasury Minister James Murray MP touted changes to inheritance tax as a key support measure. The Minister said:
"The Government also announced changes to inheritance tax, including reforms to business property relief (BPR). The Government has protected smaller family businesses from BPR changes, with the first £1 million of business assets continuing to receive 100% relief and then 50% thereafter."
The changes were announced in the Chancellor's Autumn Budget in October 2024. They mean that business owners will have to pay 20 per cent tax on assets that are worth more than £1 million from April 2026.
Stuart has said that almost 100 residents have contacted him since the changes were announced. He has added that the changes will have a "disproportionately negative" impact on South Shropshire, where 99.8% of businesses are small or medium sized enterprises (SMEs). This is more than the national average.
Analysis has found that the changes will result in the loss of over 200,000 jobs. The research conducted by CBI Economics for Family Business UK has also found that half of family-owned businesses have cancelled or delayed their investment plans, while many (12%) are thinking about selling up entirely.
In March 2024, there were 5,785 small businesses in South Shropshire. This included 1,605 agricultural businesses. That is according to a comprehensive list of UK businesses published by the Office for National Statistics (ONS) on 8th March 2025.
The Inter-Departmental Business Register (IDBR) also found that 3,000 people work in accommodation and food services across the constituency. Yet, almost a quarter (23%) of family businesses have already paused recruitment or made job cuts as a result of the tax hikes according to the research.
Stuart has now called on Ministers to retain full relief for agricultural and business properties in key sectors of the economy. He has said that this is needed in order to prevent the forced sales of assets owned by family businesses including local farms.
It is the latest stage in his campaign to support small businesses in South Shropshire. As part of his 'Bridgnorth: Shop Local' consultation, Stuart is seeking views from both residents and local businesses on the future of the town centre.
Stuart Anderson MP said:
"With over 5,700 of them, almost every business in South Shropshire is a small business. Many of them have been built up by local families over successive generations. Since the Autumn Budget, almost a hundred residents have written to tell me that planned reductions in support available via the Business Property Relief (BPR) Scheme could spell the end of this. Almost a quarter of Britain's family businesses have already paused recruitment or even made job cuts, while half have shelved their investment plans. I am dismayed that Ministers have touted this as a key support measure. I am clear that family businesses like those in South Shropshire must continue to have the confidence to make long term decisions. Ministers should rethink their plans and protect local family businesses including our vital farms.
