Sefton Central MP Bill Esterson said the Conservative-Lib Dem government's economic policy was strangling small businesses.
The former small businessman said he understood exactly what local business owners were going through.
Bill said: "I set up my own business which I ran with my wife, so I know exactly what the businesses in Sefton Central are going through.
"As the Conservative-Lib Dem government make life harder for ordinary families, so people have less to spend. This obviously has a knock-on effect for small businesses as trade dries up and they find it harder and harder to make ends meet.
"The situation gets worse when you consider just what this government is doing to the public sector. Each redundancy the coalition make in the public sector is a family which is going to find it harder to get by.
"When you take into account just how many people in Crosby, Formby and Maghull currently work in the public sector, be that as civil servants, or as teachers and teaching assistants, then you really understand how bad this government's economic policy will be on this constituency."
Bill also said January's planned VAT increase will hit businesses even harder.
He added: "The only way to get the economy going again is to stimulate it. That's exactly what the Labour government did with measures like slashing VAT from 17.5% to 15%. This together with other economic stimulus measures clearly worked as we immediately came out of recession with two clear quarters of economic growth.
"But despite all the warnings of double dip recession, this government is going against the perceived economic wisdom.
"Together with their cuts, the Conservatives and Lib Dems are making it even harder for people who from January and with the VAT increase to 20%, people will have even less in their pockets.
"This will hit ordinary people hard, and will drive even more businesses under.
"These are very difficult times for businesses and we need to do all we can to help them."