AN MP has met with the Chancellor to demand help for small businesses and charities so they can afford to pay the National Living Wage to their employees.

Maria Caulfield wanted to press upon Philip Hammond the economic challenges that being situated in the south east are presenting.

The Lewes MP said that small charities have raised concerns over the effect paying the living wage has as it increases yearly until 2020.

Although all agree that it is vital that their staff are paid well, the changes to the living wage are resulting in a number of small businesses and charities – who do not benefit from corporation tax changes - facing financial difficulties.

She said: "I am grateful to the Chancellor for meeting with me to discuss this issue.

"I highlighted that while small businesses and charities are paying the living wage they are often having to reduce employee hours to be able to afford it and so workers are not feeling any benefit from being paid more.

"I put suggestions to him, such as those by the Susses Archaeological Society in Lewes, where schemes like gift aid could be amended to support charities in affording the living wage.

"The Chancellor seemed acutely aware of the issue and pledged to look at this further as he is keen to support small businesses and charities in constituencies such as Lewes.

"I am committed to be being a voice for those in the constituency who come to me with an issue and I will have no hesitation in going to the top of Government to make sure their voice is heard."

Meanwhile, research from commercial insurer NFU Mutual has found that two thirds of consumers would increase spending if a reduction in VAT is announced in the autumn statement.

A cut in VAT by five per cent could provide the average UK adult with extra spending power of £547 per year.

The research showed that 67 per cent of consumers would increase some spend as a result of VAT savings.

Retail is the sector set to benefit most, with over half of those increasing some spend using the cash to purchase items such as clothing, electrical goods and home and DIY products. High street and online stores could benefit from increased spend almost equally.