THE future for small businesses looks increasingly uncertain.

Recent national figures and the stories from local people paint a worrying picture: high streets under pressure, rising costs squeezing margins, and our independent shops, cafés, pubs and restaurants all struggling to survive, let alone thrive.

The cross-party Business and Trade Committee's report last week highlighted the scale of the challenge.

Small firms face "significant cost pressures" from tax changes and policies, with recent hikes adding tens of thousands of pounds annually for many.

I believe the UK's high VAT threshold discourages growth, especially in labour-intensive sectors like hospitality, while business rates – which the Conservatives would scrap – remain a major headache.

Nationally, high streets saw an average of 38 stores close every day in the first half of last year – and the trend shows no sign of slowing.

I recently hosted a roundtable with local hospitality businesses to hear their experiences first-hand. The stories were stark: one owner has had to remortgage their home to keep the business going, while another said business rates increases alone have effectively cost them a member of staff.

These are the independent spots that sponsor our local clubs, employ young people from our communities, and give Farnham, Bordon, Haslemere and Liphook their unique character

Specific examples from across the constituency illustrate the squeeze. At Birdies café in Farnham Park, business rates have jumped 450 per cent – from £290 to £1,600 a month – forcing the loss of a job.

The Bat and Ball pub faces rates doubling from £800 to £1,600 monthly, with minimum wage rises adding £56,000 a year to its wage bill.

Similar concerns echo from businesses across the area. These are real people and families feeling the impact of Labour's £26 billion tax raid and the Employment Rights Act's added burdens. They are not imagined, nor are they immune from any future uncertainty.

A recent survey of employers is equally concerning: more than a third plan to cut permanent hiring due to the new worker protections, with over half expecting more conflict in the workplace.

Combined with sluggish growth, rising inflation above target, and unemployment climbing to 5.1 per cent, with youth rates at 15.9 per cent, the outlook is one of caution rather than confidence.

Labour has already U-turned on some elements, like aspects of unfair dismissal rules – yet the core issues persist: a doom loop of high spending, debt, and taxes that's stifling enterprise.

The contrast is clear. Conservatives are committed to real relief: scrapping business rates for almost every hospitality business immediately, allowing owners to reinvest in staff, wages, and growth.

We would cut unnecessary red tape, reform welfare to get people back to work, and back the entrepreneurs who keep our towns vibrant.