Surrey businesses are welcoming this week’s surprise budget, albeit with some trepidation. The budget has caused controversy among local entrepreneurs and care providers. …among other things such as removing the two-child benefit cap and freezing income tax thresholds until 2031.
Steve Lane of Robinsons Property, which deals in commercial and private housing, highlighted an important fault in the current REA playing field. He called it an immediate crisis that should be treated as such. The situation with CTTT was that Craig saw there was a real lack of inventory. Landlords are exiting the market rather than making investments in new housing.
“There’s some good points and bad points,” – Steve Lane
Lane recognised that small and medium-sized businesses will have lower business rates due to the smaller multiplier for smaller units. He noted that the big picture remains difficult. He focused on the idea that we need more landlords participating in the market. This will go a long way toward addressing the lack of market-ready properties.
In Farnham, Martin Groves, landlord of the Hot Blossom public house, explained to us why he was against the cuts. He conceded that the news isn’t all bad, that it would have been worse. Groves expressed specific concern about the effect on social care.
“We see this year’s budget as a bit of a double hit on social care,” – Martin Groves
Michelle Wilson, a care manager at Home Instead voiced her concerns about the increased minimum wage. This small domiciliary care company is based in the towns of Epsom and Dorking. She noted that while high wages are clearly a good outcome for workers, they can pose real difficulties for public service providers.
“The increase in minimum wage is obviously good for the working population,” – Michelle Wilson
Wilson continued, talking about how providers are still trying to deal with the after effects from this year’s National Insurance hike. She cautioned that expenses have skyrocketed with no similar increases in reimbursement fees, making it increasingly difficult for many forms of care to remain financially viable.
“But providers are still recovering from this year’s National Insurance increase. Costs were pushed up without fees keeping pace,” – Michelle Wilson
She warned that the caregiving space is very cutthroat. Rising wages might prove an obstacle to staff recruiting and retention.
“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,” – Michelle Wilson
As local businesses digest these budget measures, they await further details that will clarify how these changes will impact their operations in the coming years. Striking the right balance between protecting workers and doing what’s necessary to keep business alive continues to be the main sticking point for many people in Surrey.