Two of Croydon South’s election candidates have clashed over how to kick-start the area’s economy following the recession.

Conservative Richard Ottaway backed his party’s stance on blocking Labour’s proposed increase in National Insurance contributions, which the Tories have described as a ‘tax on jobs’.

But Labour candidate Jane Avis urged support for the 1 per cent rise on anyone earning more than £20,000 a year, which the Government believes is necessary to help tackle the £163bn budget deficit.

Mrs Avis stressed the need for positivity, pointing out unemployment in Croydon had not fallen as quickly as in other recessions, while Mr Ottaway highlighted the Tory manifesto pledge that 25 per cent of Government contracts would be awarded to Small and Medium-sized Enterprises.

Neither candidate would be drawn on the lack of cash Croydon has received from the London Olympic programme, despite residents being forced to shell out 38p per week for the games through their council tax.

More than 100 small business owners watched the pair fight it out alongside Carshalton and Wallington candidate Tom Brake, Apprentice contestant Lorraine Tighe and Croydon entrepreneur Joe Layton-McIntosh on April 26.

Venture Catalyst founder David Thackray, who chaired the evening at Wilson’s School in Sutton, said: “With small businesses under such economic pressure, it is clear that small decisions made in government will have a big impact on the ground, and our members made their priorities clear to the panellists.

“It is now up to those elected to follow through on their promises.”