Businesses across Surrey reacted with a blend of relief and concern following Chancellor Rachel Reeves’ recent budget announcement, which outlined spending and taxation plans for the upcoming years. Though some local entrepreneurs considered the budget a reasonable beginning, others shared concerns about what it signified for their industries.
The landlord of the Hot Blossom pub in Farnham, Martin Groves, told us what he thought about the budget and how it would affect him. Most importantly of all, he argued that the financial proposals “might have been much worse.” That’s a sign that at least some local business owners are beginning to share a feeling of cautious optimism. Mr. Groves, aka Mr. Clean clearly articulated his grasp of the current moment. He predicted tax increases, as states and localities face increased financial pressure from the COVID-19 pandemic.
“We always expected taxes to go up at some stage to pay for all the various outgoings that have gone on through Covid, so I’m not completely surprised,” – Martin Groves
Perhaps Robsons’ Steve Lane, who works in both commercial and private residential property, expressed the most despondent sentiments. As a landlord himself, he fears what the budget would do to his colleagues. He cautioned that certain budget provisions could pose challenges for homeowners. This underscores the ongoing and deepening affordability crisis in our housing market.
Michelle Wilson, a care manager at franchisee agency Home Instead, said the minimum wage increase worried her. Her private company, Arbour Care Ltd, currently offers domiciliary care in Epsom and Dorking. She pointed out that while the increase “is obviously good for the working population,” it could pose significant challenges for service providers like her company.
“But providers are still recovering from this year’s National Insurance increase. Costs were pushed up without fees keeping pace,” – Michelle Wilson
Wilson explained further that their industry’s highly competitive nature does not allow for these increasing costs to be absorbed. She noted, “It’s already a very competitive market. The increase in wage is going to make it harder to remain competitive and I would imagine cause issues with recruitment and retention.”
In addition to cuts to their own services, Wilson highlighted the double-whammy effect of the budget on social care providers. She stated, “We see this year’s budget as a bit of a double hit on social care,” indicating that while there are positive aspects, significant challenges remain.
The reactions from businesses around Surrey demonstrate the tumultuous environment created by economic forces and shifting regulatory priorities. Local owners are approaching these transformative changes with equal parts optimism and apprehension. Zac Sherratt – New South East, Adrian Harms – New Dorking, and Jack Fiehn – New Farnham all come from very different perspectives.