The region’s small and medium sized businesses are in the UK Government’s Budget “firing line” – warns Dumfriesshire MP David Mundell.The Tory MP claims announcements on Wednesday – the first by Chancellor Rachel Reeves – pose a “direct threat to the businesses which are the “the backbone of the local economy” in Dumfries and Galloway due to the Labour government’s decision to hike up national insurance contributions paid by small and medium sized operations as part of an overall £40 billion tax hike.Mr Mundell has also hit out at the budget for “offering no guarantees that extra funding will find its way into public services across his Dumfriesshire constituency”.An expected rise in fuel duty was averted after sustained lobbying of the government – including by Mr Mundell who has long opposed an end to the 14-year duty freeze, which he believes is essential in helping motorists in rural areas.He said: “After heavy lobbying of the government by many MPs representing rural constituencies, including myself, the expected hike in fuel duty did not materialise and that is to be welcomed.“It’s clear that lobbying made the difference, but also that we will need to continue to maintain pressure on ministers to ensure no increases in future years.“The government’s decision to push up employers’ national insurance contributions, while drastically lowering the threshold at which they become payable, will have come as a very unwelcome shock to many small and medium sized businesses, which are the backbone of our local economy.“The double hit of increased contributions along with a lower threshold, risks disproportionately affecting those businesses already struggling with high costs and a difficult trading climate.“While extra
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