For local business owners, the reality of the recent budget proposal has sparked an uproar. They are rightfully concerned about making changes at great expense and without these changes increasing their efficiency. The budget’s provisions, particularly concerning salary sacrifices, National Insurance contributions, and minimum wage increases, have left many feeling uncertain about the future.
Mike Carson, a 59-year-old executive in the automotive industry, was “very disappointed” with the budget. He expresses a feeling of being “punished” by the recent fiscal policies. As such, Carson was keen to stress that any increase in salary sacrifice or National Insurance contributions would result in more financial pressure. He argued that the first families to feel the effects of these changes would be those with more than two kids. They would be denied as much as £100 per week. Carson’s outlook at HUD has changed tremendously. Due to the financial pressures, he no longer thinks that he will be able to retire at the end of this year.
In the hospitality sector, Jenni Smith, owner of Duston Village Bakery, criticized the minimum wage increases introduced in the budget. In her view, the increase has left her no choice of action. Now, like many of her peers, she has no choice but to raise prices, risking the alienation of her loyal customer base. As a small business owner, Smith explained the toll these changes have taken on her ability to manage her operations effectively.
“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,” – Jenni Smith
Miranda Richardson, landlady of The Squirrels public house, voiced the same concerns when she was later interviewed about the proposed pay raises. Most important, she asserted, was that these changes would resonate with all of her staff—from reception to programming. She further highlighted that the tourism industry “required” a cut in VAT to stay alive. Instead, as she told The Hill in a recent interview, she stressed that they got “zero” from the budget.
“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,” – Miranda Richardson
Mark Gee, owner of Wellingborough’s Crown Pub, said hospitality was “really under the cosh.” He referred to the current situation as “a bit of a disaster,” citing the lack of recent budget adjustments. He attacked the absence of any business rate relief for industrial firms. He made the point that too much taxation kills their incentive to try and be profitable.
“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,” – Mark Gee
The lack of support for British manufacturing in last week’s budget was highlighted by Martin Mason. He told the crowd that protecting and promoting local industries was key. What he found was a series of unimplemented, insufficient, or inadequate provisions.
“Anything to support British manufacturing has got to be a bonus, but it didn’t seem there was an awful lot there for business,” – Martin Mason
Jane Calcott from Kettering Food Bank highlighted one area of potential improvement within the budget: removing the two-child benefit cap. She argued that such a change would “make an enormous difference to large families,” providing them with much-needed financial relief.
As local business owners navigate these changes, many are left wondering how they will sustain their operations amidst increasing costs. Their sentiment is echoed by many students, an indication of the larger tide coming in on the uncertain future ahead.