From business owners all around the region, read their reactions to this week’s big budget news. They are illuminating the problems and possibilities that the federal government’s fiscal plans have opened up. From wage increases to tax implications, the controversial budget bill affects everyone in a dramatic way, especially those in hospitality, manufacturing, and retail.
Miranda Richardson, landlady of The Squirrels pub, expressed her concerns over the pay rises. As a former librarian, she bemoaned the effect these transitions would have on frontline staff. She emphasized that the hospitality sector has faced significant challenges recently and noted, “VAT was huge in hospitality and a reduction for us was a massive thing – and nothing; that’s what we wanted, that’s what we needed.”
Jenni Smith, owner of Duston Village Bakery, condemned the minimum wage hikes. She says they “overburden” small businesses “with an unfair and excessive burden.” “It’s the minimum wage that kills us massively. I’ve got 16 staff for a little small business,” she said. And with costs continuing to rise, Smith has come under growing pressure to raise her prices in order to keep her business afloat. “The only choice I have is to put the prices up,” she lamented. Furthermore, Smith shared that her responsibilities have shifted significantly, saying, “I used to spend a lot of time out in the bakehouse, baking cakes for people, but I can’t do that now because I need to be in the shop because I can’t afford to pay people to do the shop work – so I’m just worn out.”
Mark Gee, licensee of Wellingborough’s Crown Pub voiced these frustrations. In an interview, he termed the whole scenario “a recipe for disaster” in the wake of the budget release. He criticized the lack of relief on VAT, noting, “No relief at all on VAT, which kind of kills you really, because anything you do to try and make [money], you get taxed on.” He recognized that increasing the minimum wage could help young and seasonal workers as well. He warned that it puts an impossible burden on small businesses.
With his sector—manufacturing—Martin Mason thought that the provision of free apprenticeships to young people was an important direction. He stated, “Anything to support British manufacturing has got to be a bonus,” and added a note of caution regarding other areas of concern. “It didn’t seem there was an awful lot there for business,” he remarked. Mason condemned the failure to include business rate relief for industrial businesses. He underscored how some of these same companies have faced challenges in the wake of COVID and Brexit. He noted, “We’ve had Covid to deal with, we’ve had Brexit, which had a profound effect on our exports into Europe; they could have done a lot more.”
The budget’s implications extend beyond business owners. Jane Calcott of Kettering Food Bank underscored how essential it is for the government to support families who are struggling. She stated that removing the two-child benefit cap would “make an enormous difference to large families,” emphasizing the need for more social safety nets in light of rising living costs.
Mike Carson, 59, an automotive professional from Davidson, Mich. He told us that he resented feeling “punished” by constrained budgets in the last several years. His feelings represent a deep anxiety among workers who see themselves as doing productive things that no one wants to pay for.
As local business owners navigate these complex challenges presented by the budget, they continue to advocate for policies that will support their livelihoods and communities. The mixed reactions showcase a landscape where businesses strive to balance operational viability with social responsibility amid economic uncertainties.