“Government has put handbrake on the economy”: Lib Dem leader visits MOT garage ahead of Budget

27 Oct 2026

EMBARGO: Immediate Release

The leader of the Liberal Democrats, visited an MOT garage in Fleet, Hampshire, and has been hearing about how the cost of living crisis is stifling the growth of small businesses.

Ed Davey warns economic growth is “stuck in the slow lane” and that Chancellor John Healey must urgently provide support for people like Bob Ravenscroft, owner of Hester’s Garage, in Wednesday’s Autumn Budget.

Speaking to the Liberal Democrat leader during a visit to his garage, on Tuesday (27 October), Bob highlighted how in addition to the cost of living crisis, the Government’s tax rises and the business rates system are hitting companies like his from every direction.

The Liberal Democrats said that, under Labour, the economy has failed its MOT test, and are calling on the Government to back small businesses and ease the cost of living burden on hardworking people.

The party is calling on the government to:

Turbocharge economic growth and spur investment and job creation across the UK, through a new growth and defence partnership with Europe, including joining the EU Single Market and a customs union.
Scrap business rates and replace them with a fairer system. The Liberal Democrats would replace business rates with a commercial landowner levy. Firms would no longer be taxed on the value of the building or machinery they use, which penalises investment and hits independent businesses hardest.
Boost skills and tackle the NEET crisis. The party would guarantee every young person 100 hours of work experience and professional enrichment before they turn 18 to tackle the NEETs pipeline before young people fall out of education and work. This would also help tackle the growing number of young people not in education, employment or training (NEETs), by making it cheaper for small employers to offer first jobs. According to latest ONS figures, there were an estimated 981,000 young people aged 16 to 24 years in the UK who were NEET in April to June 2026.
Deliver a £14bn emergency cost of living package to give people breathing space. The Liberal Democrats are calling on the Chancellor to use the Budget on 28 October to deliver a fully funded 18-month package to cut energy and transport costs and support the high street. That includes a 10p cut in fuel duty, £1 bus fares and a 10% cut in rail fares, helping everyone from the commuter to the tradesperson whose van is their office. It would be paid for by a windfall tax on banks’ unearned profits, a clawback from energy network monopolies and extra oil and gas tax receipts, with no extra borrowing or permanent tax rises.

Liberal Democrat Leader, Ed Davey MP said:

“Labour has put the handbrake on the economy. Growth is in the slow lane and hardworking business owners like Bob are facing higher costs, a jobs tax, and a broken business rates system.

“The economy desperately needs a tune-up. The Liberal Democrats would scrap business rates, replace them with a fairer system, and negotiate a proper growth and defence deal with Europe, so we can turbocharge our economy by joining the EU single market and customs union.

“The chancellor needs to urgently back small businesses in the Autumn Budget or face more falling by the wayside.”

Liberal Democrat Treasury Spokesperson, Daisy Cooper MP said:

“Small businesses are the engine of our economy, but they’ll have nothing left in the tank unless the Government backs them in this Budget.

“The Government has piled extra taxes on small businesses, making it near impossible for them to take on staff or invest in growing their business for the future.

“The Chancellor has a choice in the Budget: stand by while local businesses and families face another squeeze, or give people breathing space by growing the economy to cut the cost of living.”

Liberal Democrat MP for North East Hampshire, Alex Brewer MP, said:

“Local garages, shops and tradespeople across Fleet and North East Hampshire tell me the same thing time and again - they are working harder than ever and in return they are being left stranded on the hard shoulder by the Government.

“Bob’s garage is exactly the kind of local business that keeps our community moving. It deserves a Government on its side, not one that makes it harder to stay open.”

Hampshire garage owner, Bob Ravenscroft, added:

“Small Business is so much different to the corporate world who live for the shareholders. With an owner run business it’s about your customer, employees, yourself. It’s a lifestyle choice.

“Business needs time to absorb tax hikes. Quick succession increases in Business rates, National Insurance, minimum wages and general cost of living put strain on cash flow, making it very hard to take on extra staff and grow. The government says they want growth. Growth doesn’t come from the government, it comes from business and the small business sector is a major part of that pie.”

ENDS

Notes to Editors:

Neets ONS figures, here.

Image available here.